TopOptionAlert
Oct 25, 2:27 AM
$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, this is a swing, and the picture is a big oil company closing Friday at its highest price of the year, up almost 3 percent while the broad market slipped, with its report due Friday morning. Buyers paid up to 233 dollars and 21 cents on more than 8 million shares, which in plain words means they were not waiting for the report to tell them what to think. The November 20 calls give that strength three weeks past the report, with the path toward 245 dollars and then 252 dollars open, while a close under 227 dollars says Friday was a one day wonder and you step aside.
P.S. Watch 233 dollars and 74 cents, the Friday high. A move over it shows buyers pressing on instead of taking a quick profit.
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