Bullish Trendline Could Boost Phillips 66 Stock

An unwinding of pessimism could also help the shares

Deputy Editor
Feb 7, 2023 at 12:14 PM
facebook twitter linkedin

Things are boding well for Phillips 66 (NYSE:PSX), which was last seen up 2.8% to trade $100.80, after the company announced it secured a long-term collaboration with Nexus Circular. PSX is up more than 11% year-over-year, while the $96 area stepped in as a layer of support during its last pullback. Even better, the stock is now trading near a historically bullish moving average. 

Digging deeper, Phillips 66 stock is within one standard deviation of its 200-day moving average, which has pushed the shares higher in the past. Over the last three years, PSX saw six similar signals, finishing 9.3% higher on average one month later in 83% of the occurrences. From its current perch, a move of similar magnitude would put the equity back above $110.

PSX Chart February 72023 

An unwinding of pessimism in the options pits could provide additional tailwinds. The security's 50-day put/call volume ratio of 1.35 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 94% of readings from the past 12 months, indicating long puts have been getting picked up at a much faster-than-usual clip lately.

Echoing this, Phillips 66 stock's Schaeffer's put/call open interest ratio (SOIR) of 1.17 ranks higher than 97% of annual reading, suggesting short-term options traders have rarely been more put biased.

PSX calls can be had for a relative bargain right now. This is per its Schaeffer’s Volatility Index (SVI) of 34%, which stands higher than just 21% of readings from the past year, suggesting options traders are pricing in low volatility expectations at the moment.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1