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New Plays

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CVX - $92.12 - Chevron Put

This is simply another hedge play to capture any decline in oil prices over the next couple months. Chevron will report earnings next Friday and they are the least favored of the three major US firms. (XOM, COP and CVX). The stock has found resistance at $94 and a decent decline in oil prices could knock it back to $80. This is nothing against Chevron just a short-term trade in hopes of making a profit. Should they trip over their earnings report we will be there to profit from it.

Buy Dec $90 Put CVX-XR currently $4.70, Stop loss $95.50

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TSO - $54.38 - Tesoro Put

Tesoro has declined to support after failing to move higher over the last three months. TSO had a huge run from $32 to $65 (post split) between January and May. They split 2:1 in late May and lost their momentum as gasoline prices slowed their rise. I believe TSO could break support at $53.50 and fall significantly if gasoline prices continue to drop. This is a short-term play and has nothing to do with the quality of Tesoro as a refiner.

Buy Nov $50.00 PUT TSO-WJ currently $3.50, stop TSO $62


 

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