TopOptionAlert
Oct 24, 6:36 PM
$CVX NOV20 240C · still actionable
Zone:
$231.58 to
$234.84
Invalidation: close under
$227
Objectives:
$245, then
$252
The math: up 5.1% to the first objective and 8.1% to the second, against 2.7% risk on the invalidation, just over 3 to 1 to the second.
Dear friend, picture a big oil company that just printed its highest close ever while the broad market slipped, and still has its report card due Friday morning. This is a swing, and the setup is simple: Friday buyers paid up to
$233.21 on strong volume, which means they were not waiting for the report to tell them what to think, and the November 20 calls give that strength three weeks past the report to keep working. If the report adds to the story, the path toward
$245 and then
$252 looks like the natural next chapter, while a close under
$227 says Friday was a one day wonder and you step aside.
P.S. Watch
$233.74, the Friday high. A move over it shows buyers pressing on instead of taking a quick profit.
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