Covid isn’t the only thing in the news.
Oil has been making headlines, too.
Demand worries are rising with the resurgence of Covid and a report of a weekly fall of more than a million barrels in U.S. crude supplies.
Here is what I am seeing on the Exxon (Ticker: XOM) stock chart:
I saw a doji candle formed yesterday. Remember, doji may be a signal of the end of a trend — in this case, a downward trend.
XOM has traded down from $654.61 on June 25 — which was also a doji candle — and closed at $55.56 yesterday. I think it can trade back up to $58-$59.
Looking at the options, I like buying next week’s slightly out-of-the-money calls:
If XOM opens up and trades higher today, I will pay up to $.82 for the Aug. 27 56-strike calls.
- Over the weekend, I recommended buying the 65-strike calls in Twitter (Ticker: TWTR). I paid $.97 for them and TWTR has since traded lower with the rest of the stock market. They closed yesterday at $.25. It is not out of the realm of possibility for these calls to come back.
- On Monday I recommended puts in both Bank of America (Ticker: BAC) and Wells Fargo (Ticker: WFC). Both banks opened and traded lower so I needed to adjust my strikes.
I ended up buying the BAC Aug. 20 41-strike puts for $.60 and they went out at $.38 yesterday. I still have three day for these to work.
I also bought the WFC Aug. 20 49.50-strike puts and paid $.79. I sold half of them at $1.43 yesterday and they closed at $1.01. These will trade higher, again.
Thanks for Reading … See You Next Tuesday!