Buying COP call contracts.
ConocoPhillips (COP) is a U.S. oil and gas company that produces 1 million barrels of oil and 3.2 billion cubic feet of natural gas per day.
The supply / demand imbalance for oil and gas is a structural issue that won’t go away any time soon.
And as we head into winter, natural gas producers are benefiting from strong export demand as Europe scrambles to fill storage tanks.
Shares of COP are moving higher today, breaking above near-term resistance.
The overall trend is bullish and fundamentally the stock is cheap compared to expected profits.
Our in-the-money call contracts will allow us to participate if the stock continues higher, while muting our risk if shares pull back.
- Buy (to open) 8 COP October 21st $110 Calls
- Limit $11.00 or less
- The new position will represent roughly 9.0% of our Spec Model capital
- Executed 13:05
- BOT 8 COP Oct 21 $110 Calls @ $10.52