TopOptionAlert
Oct 19, 12:01 PM
$CVX NOV20 235C · still actionable
Zone:
$223.42 to
$226.56
Invalidation: close under
$218.05
Objectives:
$240, then
$255
The math: up 6.7% to the first objective and 13.3% to the second, against 3.1% risk on the invalidation, better than 4 to 1 to the second
Dear friend, picture a big oil company that has been climbing a set of stairs all month and just stepped onto a landing nobody had reached before, and that is this swing setup. Chevron closed Friday at
$224.99 after rising 2.6 percent that day to a
$225.31 high, up 6.1 percent in five sessions, and what that means is simple. Buyers are paying higher prices with earnings on October 30 still ahead, and overhead sits room toward
$240 first and
$255 next while these calls run to November 20. If price closes under
$218.05 that climb has lost its footing and you step aside, plain and simple.
P.S. Watch
$225.31 on Monday. It was the high on Friday, and a close over it would show buyers pushing into new ground, not just holding the climb.
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