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
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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.
 
 

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