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 consolidating in a symmetrical triangle. This comes after a reversal off the 38.2% retracement of the post pandemic move in July. It has now retraced 50% of that drop. The target move out of the triangle, if to the upside, would be a full retracement back to the all-time high. The RSI is running sideways in the bullish zone with the MACD flat and positive.

There is resistance at 160 and 163.75 then 170 and 171.75 before 174 and 180.75. Support lower comes at 155.25 and 152 then 150. Short interest is low at 1%. The stock pays a dividend with an annual yield of 3.60% and started trading ex-dividend August 18th. The company is expected to report earnings next on October 27th.

The September options chain shows biggest open interest at the 150 and 140 strikes on the put side and at the 165 and 175 strikes on the call side. October open interest is biggest at 135 on the put side and 170 on the call side. And in November the open interest is biggest at 150 and 125 on the put side, while at 170 and 175 on the call side.

Chevron, Ticker: $CVX

Trade Idea 1: Buy the stock on a move over 160 with a stop at 155.

Trade Idea 2: Buy the stock on a move over 160 and add a September 155/150 Put Spread ($1.70) while selling the October 180 Call ($1.45).

Trade Idea 3: Buy the September/November 170 Call Calendar ($4.45) and sell the October 135 Put ($1.70).

Trade Idea 4: Buy the November 140/160/175 Call Spread Risk Reversal ($1.90).

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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 August options expiration in the books, saw equity markets with some profit taking after a 4 week run higher.

Elsewhere look for Gold to continue its downtrend while Crude Oil also continues to trend lower. The US Dollar Index continues to drive to the upside while US Treasuries resume their downtrend. The Shanghai Composite looks to consolidate between short term and resistance and long term support while Emerging Markets resume their move lower.

The Volatility Index looks to remain in the normal range taking some pressure off of equity markets and allowing them to move to the upside. Their charts look strong on the longer timeframe, but still shy of a long term reversal. On the shorter timeframe the QQQ, IWM and SPY are getting a nice reset lower on the momentum measures. As long as they can print higher lows the nascent uptrend should remain. A lower low would deflate the optimism out of the markets. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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