BP Stock Pops on Earnings, Dividend Hike

BP plc (NYSE:BP) reported second-quarter earnings and this morning, shattering analysts' top- and bottom-line expectations. In addition, the U.K.-based petroleum producer announced it will buy back $1.4 billion of its own shares this quarter, and increase its dividend by 4% -- a total shareholder payout of around $6.13 billion. In response, BP stock is moving higher, last seen up 4.6% to trade at $25.18 this morning.

On the charts, BP needed some good news, considering its 8% quarterly deficit heading into today. The stock has struggled since falling from a July 14, annual high of $28.49, which roughly coincides with an early 2020 bear gap that saw the $29 level become new highs. Now up over 21% year-to-date, today's positive price action only affirms the bounce the shares have taken from their 320-day moving average, which contained BP's slide last month. 

While the brokerage bunch has yet to chime in on the event, there's already ample room for increased sentiment. In fact, of the 13 in coverage, seven analysts still consider BP a "hold" or "sell."

Options look like a safe bet currently, considering the security's Schaeffer's Volatility Scorecard (SVS) rating currently sits at 90 out of 100. This suggests the stock has exceeded these volatility expectations during the past year -- a boon for premium buyers.