ConocoPhillips (COP) is an integrated oil and gas company with operations around the globe. The company’s stock is currently trading around $67.95 in a 52 week range of $56.38-$74.59. The stock has been underperforming the market this year with shares falling by around 3.75% year to date. Options action in COP during this morning’s trading session would suggest that traders believe this trend will reverse and that the stock will be strong through April expiration. Earlier this morning a trader bought 9,106 COP Apr 70 calls for $0.35. This is an extremely bullish bet that also represents volume more than 3.5 times the average daily option volume in COP. The COP chart is technically not in bullish territory according to the Ichimoku Cloud. However, the stock is very close to the top of the cloud and could be poised for a breakout. With shares of COP approaching breakout territory and strong bullish order flow we believe that COP is setting up well for a long position.
Trade: Buying the COP Apr 70 Calls for $0.35
Risk: $35 per 1 lot
Reward: Unlimited
Breakeven: $70.35