4 Trade Ideas for ConocoPhillips: Bonus Idea

• Posted by Greg Harmon
• on November 14th, 2022

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

ConocoPhillips, $COP, comes into the week moving towards the all-time high at the Median Line of an Andrews’ Pitchfork from the July low. The Bollinger Bands® are also following that higher. The RSI is rising in the bullish zone after a reset and then MACD is level after a cross down in positive territory. There is resistance at 137 and then free air above. Support lower comes at 131 and 125. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 3.87% and begins trading ex-dividend Monday. The company is expected to report earnings next on February 1, 2023.

The November options chain shows biggest open interest at the 125 put strike and then much bigger at the 130 call followed by the 125 and 135 calls. In December the biggest open interest is at the 125 put and call. In the January chain the 100 and 92.50 puts have the biggest open interest while on the call side it is spread from 100 to 150. Finally in February the 110 put and the 100 call have the biggest open interest.

ConocoPhillips, Ticker: $COP

Trade Idea 1: Buy the stock on a move over 137 with a stop at 131.

Trade Idea 2: Buy the stock on a move over 137 and add a December 130/125 Put Spread ($1.85) while selling the December 150 Call ($1.30).

Trade Idea 3: Buy the December/January 150 Call Calendar ($2.05) and sell the December 120 Put ($1.90).

Trade Idea 4: Buy the January 115/140/150 Call Spread Risk Reversal (40 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 heading into November Options Expiry and the last week before the holiday season, saw equity markets showed exuberance as inflation data for October suggested the Fed is winning its battle.

Elsewhere look for Gold to continue its move to the upside while Crude Oil consolidates. The US Dollar Index looks to continue to move lower while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue the short term move higher while Emerging Markets bounce in their downtrend.

The Volatility Index looks to continue its path back to the normal range making the path easier for equity markets to the upside. Their charts look much stronger, especially on the longer timeframe. On the shorter timeframe the SPY is leading the charge higher followed by the IWM. The QQ has been the laggard but is now breaking a 2 month resistance zone to the upside. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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