Buying CVX call contracts.
Chevron Corp. (CVX) is one of the largest integrated oil producers.
The company is benefiting from higher oil prices and also from shifting regulations that encourage drilling and increasing production.
While oil prices may pull back from their current level, the last few months have shown the world that overall demand for oil and natural gas is not dead. And companies like CVX need to be given more freedom to produce these needed resources without overly strict regulations.
This overall shift should drive profits for CVX and help the stock continue to trade higher.
Recently, CVX has pulled back to a key support area, giving us a chance to set up a new bullish play for the stock.
Buying in-the-money call contracts gives us a chance to profit from any positive movement for CVX over the next 3 weeks. Meanwhile, these call contracts should retain some extra value even if the stock pulls back.