2015-03-17 Energy Stocks Are Starting To Show Signs Of Life (XLE)
Energy Stocks Are Starting To Show Signs Of Life (XLE)
Notes: Yesterday, someone rolled out 55,000 June $84/$89 call spreads ($0.36 credit) into 55,000 June $77/$82 call spreads ($1.61 debit). The June $84/$89 call spreads were initially put on for a $1.70 debit on February 3rd. He/she is taking a loss on the June $84/$89 call spreads, but they remain bullish on the sector and decided to add another $68K+ of premium to the trade with a breakeven of $78.61. The top holdings of the (XLE) include: (XOM), (CVX), (SLB), (KMI), (EOG), (COP), (OXY), (PXD), (APC), (WMB). Anadarko Petroleum and ConocoPhillips have both saw big upside call buying in just the last few days. Check out yesterday’s Options Report to see the new activity in (APC) and where traders were placing bets in (COP) last week.
Energy Select Sector SPDR Fund ETF (XLE) Options Trade Idea
Buy the (XLE) Apr 17 $75/$80 bull call spread for a $1.65 debit or better
(Buy the Apr 17 $75 call and sell the Apr 17 $80 call, all in one trade)
Stop loss- $0.75
1st upside target- $3.70
2nd upside target- $4.90
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