Bullish – COP $59.90 – Energy
The S&P 500 (SPY) has consolidated last week after making a push higher after breaking above its $302.50 major resistance level. Markets have taken a pause after digesting trade war news, Hong Kong protests and a slowdown in corporate and economic numbers. We continue to take a cautiously bullish stance on the markets.
XLY Trade Idea:
On CNBC’s OptionsAction show on Friday, Carter Worth suggested that ConocoPhillips is set up for a continuation higher. After completing an inverted head & shoulders formation and breaking above resistance, COP is moving higher on an absolute and relative basis to the market. Expecting COP to move higher, Michael Khouw suggests buying a Jan/Dec 60/62 Call Diagonal @ $1.65 Debit. As of Friday’s close, these calls were trading at $1.63 Debit. OptionsPlay suggests managing risks by cutting losses if the price of the option falls below $0.81.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: COP OptionsAction Trade