Chevron (CVX) Offering Possible 9.17% Return Over the Next 31 Calendar Days

Chevron's most recent trend suggests a bearish bias. One trading opportunity on Chevron is a Bear Call Spread using a strike $120.00 short call and a strike $130.00 long call offers a potential 9.17% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $120.00 by expiration. The full premium credit of $0.84 would be kept by the premium seller. The risk of $9.16 would be incurred if the stock rose above the $130.00 long call strike price.

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

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

The RSI indicator is at 25.96 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

U.S. grants Chevron another three months for Venezuela operations
Sat, 18 Jan 2020 17:07:45 +0000
The U.S. Treasury Department on Saturday granted permission for Chevron Corp, the last major U.S. oil company operating in Venezuela, to continue working in the country until April 22. The United States last year imposed sanctions that barred imports of Venezuelan oil and transactions made in U.S. dollars with Venezuela's state-run oil company PDVSA. The move was designed to starve the country of oil dollars and oust President Nicolas Maduro.

Chevron Gets Another Reprieve to Continue Working in Venezuela
Sat, 18 Jan 2020 13:55:33 +0000
(Bloomberg) — Chevron Corp. and four oilfield service providers won U.S. government approval to continue working in Venezuela for 90 days, allowing the companies’ access to the world’s largest reserves of crude despite sanctions on the crisis-stricken country.The U.S. Treasury Department decision is the fourth waiver granted since sanctions were announced in November 2018 in what is becoming a fraught quarterly ritual for the companies. Along with Chevron, the waiver also exempts Baker Hughes Co., Halliburton Co., Schlumberger Ltd. and Weatherford International Ltd. from sanctions.The waiver was extended through 12:01 a.m. Eastern time on April 22. The previous waiver was due to expire on Jan. 22.Venezuela’s daily oil production slumped to a 75-year low of 792,000 barrels last year as sanctions crippled the economy and cut off access to U.S. refiners. As a result, the nation’s crude exports that bankroll the regime tumbled to the lowest since 1985.While Venezuela accounts for only about 1% of Chevron’s global crude production, it remains strategically important given the nation’s vast untapped reserves. Proponents of Chevron’s position argued that withdrawing would cede market share and influence to Russian and Chinese companies.Chevron is the last remaining major U.S. explorer in the country. Rivals Exxon Mobil Corp. and ConocoPhillips exited a decade ago after then-President Hugo Chavez seized control of their assets.\–With assistance from Fabiola Zerpa.To contact the reporters on this story: Lucia Kassai in Houston at lkassai@bloomberg.net;Kevin Crowley in Houston at kcrowley1@bloomberg.netTo contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Brian Wingfield, Rachel GrahamFor 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.

US extends Venezuelan oil refiner Citgo’s lifeline
Sat, 18 Jan 2020 04:24:37 +0000
The US government has given Venezuelan-owned, Texas-based oil refiner Citgo another three-month lifeline, protecting it from creditors who are trying to seize it in compensation for missed debt repayments. In a statement issued late on Friday, the Treasury also said it was giving Chevron and four oil service providers another three months to continue working in the crisis-wracked Opec nation.

The Zacks Analyst Blog Highlights: JPM, JNJ, CVX and PG
Fri, 17 Jan 2020 16:43:04 +0000
The Zacks Analyst Blog Highlights: JPM, JNJ, CVX and PG

Low Natural Gas Prices and High Debt Still Weigh Down CHK Stock
Fri, 17 Jan 2020 12:10:07 +0000
Can floundering Chesapeake Energy (NYSE:CHK) catch a break in 2020? CHK stock is worth less than a third of what it was this time last year.Source: Casimiro PT / Shutterstock.com Natural gas, Chesapeake's bread-and-butter, remains in a slump. The Iran incident briefly pushed oil up above $60/barrel, but prices fell back after tensions cooled down. With the company dependent on factors outside its control (energy prices), it's tough to see how they can get themselves back on track.The company's high leverage also doesn't help. A recent debt exchange may keep the company out of bankruptcy in the coming year, but in the long-term, the company's work is cut for them with regard to de-leveraging. Based on quotes from the Finra/Morningstar Bond Screener, much of the company's publicly-traded debt trades far below par value.InvestorPlace – Stock Market News, Stock Advice & Trading TipsAs a recent analysis from InvestorPlace's Ian Bezek discussed, it's telling that bondholders took 30%+ losses in the refinancing. And if the bonds aren't worth their par value, that doesn't bode well for Chesapeake's equity. * 10 Cheap Stocks to Buy Under $10 In other words, even though shares trade around $0.70/share (down 80% from their 52-week high), they could go to zero. On the other hand, investors willing to risk a complete loss could see significant upside if energy prices rebound in the coming year.Increased energy prices would improve the valuation of the company's underlying assets. With asset sales, Chesapeake could pay down much of its debt, get out of the hole, and become a more stable enterprise. With natural gas prices depressed, Chesapeake's highly-leveraged balance sheet, and asset impairment charges hitting the energy space, the stock's near-term prospects do not look promising. Handicapping Natural GasChesapeake is not only overleveraged debt-wise. The company's future prospects are all-too-dependent on natural gas prices. Even with cuts, the company's production split remains heavily weighed towards natural gas.There currently is oversupply in the natural gas market. This isn't helped by the abundance of associated gas, that is, natural gas found with crude oil deposits. But some oil producers are opting to burning off the unprofitable natural gas, in lieu of selling it. However, this alone may not make up for the glut.Much of Chesapeake's production this year is hedged at higher prices ($2.75/MMBtu). This covers the company for 2020, but 2021 is another matter. Based on forecasts by the Energy Information Administration (EIA), estimates call for natural gas prices to be about $2.54/MMBtu. This is a rebound from their 2020 average price estimates ($2.33/MMBtu), but still far from prices seen in prior years.Natural gas prices are the main catalyst to make or break Chesapeake. This plays into another factor with the company, which is the value of its underlying reserves. The company needs the market value of these assets to sustain in order to execute much-needed asset sales. Asset Sales and CHK StockChesapeake Energy is very dependent on factors outside its control. Yet, there are ways for the company's management to work through these headwinds, helping reverse the stock's downward trend.Asset sales remain a big option for Chesapeake. The company was in talks to sell $1 billion in assets to Comstock Resources (NYSE:CRK). However, December's refinancing deal has delayed talks on this proposed transaction.Even if Chesapeake can find buyers for some of its assets, what types of prices do they expect to fetch? Chevron's (NYSE:CVX) recent impairment charges were discussed in InvestorPlace contributor Mark Hake's January 3 CHK stock analysis. However, Chevron is not the only big energy player writing-down oil and gas assets. Royal Dutch Shell (NYSE:RDS.A RDS.B) has also announced a big impairment charge.Chesapeake's oil and gas reserves are on the books at $14.9 billion. But with an estimated $8.76 billion in debt (post-debt exchange), and a current market cap of $1.32 billion, investors are implying these reserves are worth just around $10 billion. Unless the natural gas situation improves, the company's margin for error is becoming thinner and thinner. If natural gas assets see further valuation impairments, Chesapeake's assets may be worth less than its outstanding debt. In other words, CHK stock would truly have zero underlying value. The Bottom Line on CHK StockIt's impossible to tell when or even if Chesapeake Energy will rebound. So much of the bull case hinges on "predicting the unpredictable." How good are you at handicapping the natural gas markets? Unless you can develop a high-conviction case for higher gas prices in 2020 and 2021, I wouldn't try to tackle this hot mess of a company.You could speculate, and see big gains if a black swan event pushes natural gas prices back up to prior levels. But if you prefer to invest, and not gamble, Chesapeake is not your play. Look elsewhere for opportunity.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post Low Natural Gas Prices and High Debt Still Weigh Down CHK Stock appeared first on InvestorPlace.

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