Anadarko Petroleum Corporation (APC) is a Texas based oil producer is up 31.2% YTD and isn’t looking back. The energy sector has lead the market this year and APC is no exception. After receiving a nice jump after a lawsuit settlement in April the stock has continued to climb. It has underperformed the industry in the past years and this new activity may be due to a catch-up in productivity. A trader went aggressively long APC buying the right to buy company stock at $115 at or before August expiration. It’s currently trading at $104.31 hitting its 52-week high.
The daily chart is forecasting a continued bullish trend over the next month. Day traders should also be confident looking at the shorter charts with APC breaking resistance above the cloud. Looking at the five-minute bar, APC is flirting with topside resistance in the cloud.
Now lets look at the trade:
Buying the APC Aug 115 Calls for $.77
Targets: Sell 25% at $.90, Sell 25% at $1.10, Sell 25% at $1.30, Sell 25% at $1.50
Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long
This article was written by Kyle Sheahan, an Associate at Keeneonthemarket.com.
e: Kyle@Keeneonthemarket.com