Schaeffer's Top Stock Picks for '25

Option Bear Exits as Chevron Corporation (CVX) Tests $100

A big block of Chevron Corporation (CVX) puts was sold to close earlier

Digital Content Group
Jan 30, 2015 at 2:53 PM
facebook X logo linkedin


Chevron Corporation (NYSE:CVX) is among the biggest Dow decliners this afternoon, off 2% to trade at $100.94, after posting its lowest quarterly profit since 2009 -- though per-share earnings did top estimates -- and halting its 2015 share buyback program. Earlier, in fact, the stock tanked to $98.88, marking its first foray into double-digit territory in more than two years. As such, puts are crossing the tape at nearly three times the usual intraday rate, and outstrip calls by a healthy margin.

Digging deeper, it appears one speculator is closing out his bearish position. Specifically, a block of 1,708 March 100 puts was sold to close around lunchtime, according to data from the International Securities Exchange (ISE). In other words, the trader is taking his skeptical bet off the table, with the stock now sitting just above $100 -- perhaps satisfied with his gains, and concerned the round-number century mark may act as support as it did in mid-December.

Take a step back, put buying has been the strategy of choice among recent CVX options traders. The stock's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 1.54 -- just 11 percentage points from a 12-month peak.

In other news, sector peer Occidental Petroleum Corporation (NYSE:OXY) is rallying this afternoon, amid crude oil's 8% rebound and a day after its CEO took a shot at Chevron Corporation (NYSE:CVX). Specifically, during a conference call, the executive was asked whether his company may be acquired by one of its larger rivals -- to which he quipped, "I looked at Chevron and they don't have any free cash." To counter, CVX CEO John Watson said the company is "actively screening [M&A] opportunities ... and we'll take advantage of opportunities that we see."

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?