4 Trade Ideas for Chevron: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Chevron, $CVX, comes into the week approaching resistance. It has an RSI rising in the bullish zone with a MACD positive and turning up. There is resistance at 197.50 and 202.50 before 205 and 213.50. Support is at 194 and 191.50. Short interest is moderate at 3%. The stock pays a dividend with an annual yield of 3.62% and will trade ex-dividend on August 19th. The company is expected to report earnings next on October 29th.

The August options chain has largest open interest at the 190 put but far larger at 205 call. In the September open interest is spread from 180 down to 150 on the put side and builds from 170 to a peak at 200 through 220 on the call side. The October chain as biggest open interest at the 180 put and the 210 call. Finally, in the December chain, open interest builds from the 190 put to a peak at 165 and then tails off to 150. On the call side it builds from 165 up to a peak at 220 and then holds through 250.

Chevron, Ticker: $CVX

Trade Idea 1: Buy the stock on a move over 197.50 with a stop at 190.50.

Trade Idea 2: Buy the stock on a move over 197.50 and add a September 195/185 Put Spread ($4.30) while selling the December 230 Call ($3.15).

Trade Idea 3: Buy the August/September 210 Call Calendar ($2.04) while selling the August 185 Put ($1.23).

Trade Idea 4: Buy the October 180/200/210 Call Spread Risk Reversal (65 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday, which with the July FOMC meeting in the books, saw equity markets remaining a bit unsettled as bond yields rise against the new Fed Chairman’s lack of any clarity.

Elsewhere, look for Gold to continue the short term consolidation in a downtrend with Crude Oil reversed to the upside but paused. The US Dollar Index looks to move off of the very top of the 15 month range while US Treasuries confirm a break down through support in consolidation to 20 year lows in price. The Shanghai Composite looks to pause in the downtrend while Emerging Markets gather upward momentum uptrend.

The Volatility Index looks to continue in the normal zone after a threat of a move higher keeping a slight tailwind behind equities. They could use that as the charts of the SPY and the IWM are showing cracks on the shorter timeframe. The QQQ is now on a short leash to prove it has bottomed and reversed with the IWM up from a 6 week low and the SPY holding the strongest in a 3 month consolidation. They all continue to look strong on the longer timeframe consolidating at the highs, with hammer reversals in the SPY and QQQ. Use this information as you prepare for the coming week and trad’em well.