Analyst: This Oil Stock is More Stable Than Sector Peers

Call activity is ramping up following the bull note

Deputy Editor
Nov 24, 2021 at 10:07 AM
facebook twitter linkedin


RBC Capital Markets upgraded Chevron Corporation (NYSE:CVX) to "outperform" from "sector perform" today, raising its price target to $145 from $130 as well. The firm noted that the blue-chip energy giant has a much more stable portfolio than its industry peers, putting the company in a good position to benefit from a strong future commodity cycle. 

The analyst joins an already bullish brokerage bunch. Coming into today, 12 of the 16 in coverage considered Chevron stock a "buy" or better, while the other four recommended a tepid "hold."

Call activity is ramping up following the upgrade. Already today, 5,411 calls have crossed the tape, which is double the amount typically seen at this point. The most popular contract is the weekly 11/26 117-strike call, followed by the weekly 12/3 120-strike call.

Speculating on Chevron stock's next move with options might be a prudent play, too, especially considering the equity's Schaeffer's Volatility Index (SVI) of 24% stands higher than just 18% of readings from the past 12 months. This means options traders are pricing in relatively low volatility expectations for CVX at the moment. 

Trading slightly higher in response to the bull note, up 0.6% at $117.20 at last check, Chevron stock is hovering near its highest level since January 2020. A pullback last week was saved by the 40-day moving average, and the stock boasts a 37.7% lead year-to-date.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners