Chevron (CVX) Offering Possible 35.14% Return Over the Next 9 Calendar Days

Chevron's most recent trend suggests a bullish bias. One trading opportunity on Chevron is a Bull Put Spread using a strike $90.00 short put and a strike $85.00 long put offers a potential 35.14% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $90.00 by expiration. The full premium credit of $1.30 would be kept by the premium seller. The risk of $3.70 would be incurred if the stock dropped below the $85.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Chevron is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Chevron is bullish.

The RSI indicator is at 59.11 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Chevron

Venezuela crude output keeps sliding, fields shut due to fire damage
Mon, 04 May 2020 21:18:03 +0000
Venezuela's oilfields produced 687,000 barrels of crude last Saturday, up from 653,000 barrels on Friday but below the 718,000 barrels per day (bpd) the country said it produced in March, according to documents seen by Reuters on Monday. The drop came as output in the country's Orinoco oil belt, home to the world's largest deposits of heavy crude, fell by nearly 100,000 bpd over three weeks to 307,000 bpd on Saturday, two internal documents from state oil company Petroleos de Venezuela showed. A string of wildfires has recently hit storage tanks and pumping stations in the belt, forcing some producing areas to temporarily halt output.

Were Hedge Funds Right About Chevron Corporation (CVX)?
Mon, 04 May 2020 19:40:45 +0000
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]

Texas Oil Quotas ‘Dead,’ Says Regulator Who Touted Them
Mon, 04 May 2020 17:11:05 +0000
(Bloomberg) — A lame-duck Texas regulator who proposed mandatory oil-output cuts said the effort is “dead” a day before the biggest U.S. crude-producing state was set to vote on the measure.Texas Railroad Commissioner Ryan Sitton said in an interview on Bloomberg TV that the three-member agency wasn’t prepared to vote on curtailing supplies in a process known as “pro-rationing.” His comments likely mark the end of a month-and-a-half-long saga that divided the shale industry over whether regulators should adopt OPEC-style production caps amid a historic collapse in crude prices.The unprecedented implosion of the entire oil industry has been so swift and severe that American companies have been turning off drilling rigs, demobilizing fracking crews, slashing jobs and shutting wells without the need for a government order. Fracking activity in U.S. fields has slumped 82% in the past seven weeks, while oil drilling is down 52%, according to data compiled by Bloomberg.“At this point we still are not ready to act, and so it’s too late, so there is no proposal to make,” Sitton, one of three Republicans on the commission, said Monday. “I think that pro-ration is now dead.”Exxon, Chevron and ConocoPhillips plan to curb as much as 660,000 barrels a day of combined American output by the end of June. Permian Basin producer Concho Resources Inc. has shut in about 4% to 5% of total output and warned last week that it will likely be forced to curtail even more.“The market forces are stronger than the threat of proration ever was,” said Cye Wagner, chairman of the Texas Alliance of Energy Producers, which was opposed to state quotas. “It would be more harmful to the industry than the market-driven response that’s coming.”Sitton, who lost the primary election for his own seat earlier this year, had been the only member of the Texas Railroad Commission — the state’s chief energy regulator — to come out in favor of production caps. Chairman Wayne Christian recently stated his opposition to cuts in an opinion piece for the Houston Chronicle, and Commissioner Christi Craddick had expressed numerous concerns during the agency’s most recent meeting.Among oil companies, Pioneer Natural Resources Co. and Parsley Energy Inc., founded by a father and his son, had been the biggest champions of instituting mandated cuts.But Exxon Mobil Corp. and Chevron Corp., along with a long list of independent producers, had argued that the market was already driving curtailments and that it was best for the government to stay out of it. The chief executive officer of Enterprise Products Partners LP even went so far as to say that quota-supporting producers were simply trying to skirt contractual obligations.$1,000 PenaltySitton’s proposal called for a 20% cutback in the state’s output, conditional on other states and nations making similar moves. The measure would have penalized producers who exceeded quotas to the tune of $1,000 a barrel. But Christian and Craddick both said they feared legal repercussions that would make such an effort ineffective.“I may be the only lawyer in the group, but I guarantee you this is going to the courthouse,” Craddick said last month.While the debate over production caps may be sidelined in Texas, other states are still considering whether such a response is warranted. Oklahoma is scheduled to discuss quotas on May 11 and North Dakota will take up the issue on May 20. Still, those efforts are likely a long shot without Texas on board.(Updates with Oklahoma, North Dakota meetings in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

More Big Oil Companies Likely to Cut Dividends, Goldman Says
Mon, 04 May 2020 15:56:00 +0000
Goldman Sachs analyst Damien Courvalin wrote that he now expects other European oil companies to also cut their dividends after Shell did, though perhaps by more moderate amounts.

ConocoPhillips Stock Added to Goldman Sachs Conviction List
Mon, 04 May 2020 14:22:00 +0000
ConocoPhillips should be a strong participant in an approaching oil-price upcycle, according to a Goldman Sachs analyst, who reiterated his buy rating Monday and added the energy giant to the firm's conviction list. Analyst Neil Mehta, who also raised his price target to $51 from $38, said in a note to clients that “we are seeing micro/macro fundamentals bottoming and expect ConocoPhillips to be a strong participant in the upcoming oil price upcycle, given the level of underperformance relative to large-capitalization U.S. majors to date, as well as the company's strong leverage to Brent [crude].” Mehta said that ConocoPhillips has “traded in line with Brent prices, and we expect this correlation to continue, particularly as over 70% of the company's production is Brent-linked.”

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