Chevron's first-quarter earnings and revenue report beat out analyst estimates
The shares of Chevron Corporation (NYSE:CVX) are down 2.5%% to trade at $89.68, this morning. Although the energy corporation reported adjusted first-quarter earnings of $1.29 per share on revenue of $31.50 billion -- both of which handily trumped Wall Street's estimates -- the company's capital expenditure forecast grew by $2 billion for 2020. Looking ahead to the second quarter, Chevron CEO Mike Wirth remarked, "This quarter looks like in our industry we are seeing a bottom."
Despite today's pullback, Chevron stock is up a massive 75% from its March 19, 15-year low of $51.60. However, the rally is staring up at overhead pressure at its 80-day moving average, a trendline not toppled since Jan. 6. Coming into today, the majority of analysts are still optimistic on Chevron stock. Of the 15 in coverage, 13 sport a “buy” or better, with not a single "sell" on the books.
Puts are preferred in the options pits. CVX sports a 10-day put/call volume ratio of 1.30 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 91st percentile of its annual range, suggesting long puts have rarely been more popular in the last 12 months.
Meanwhile, with earnings come and gone, a volatility crush means the stock's near-term options are attractively priced at the moment. Schaeffer's Volatility Index (SVI) stands at 48%, in the 27th percentile of its annual range. This indicates that now is an attractive time to jump aboard the energy name with options.