News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Long Energy Stocks: Top Trade Opportunities

Long Energy Stocks: Top Trade Opportunities

Michael Rechenthin, PhD,

Energy Stocks on the Move

While energies are on a tear lately, their impact on the S&P 500 is limited. Under 5% of the index is comprised of stocks in this sector. This also means many portfolios will be underrepresented this sector.

Twenty-one stocks are in this sector.

Long Energy Stocks: Top Trade Opportunities

Here are a few observations.

  • The best 1-year performance is Devon (DVN) – the worst is Philips (PSX).
  • Largest capitalizations are Exxon (XOM), Chevron (CVX), and Conoco Philips (COP) by far.
  • The most volatile is Occidental (OXY) – traders have loved this stock for years. The options are liquid as well.
  • Stocks that have a tendency to be most correlated on a daily basis to the price of crude are OXY (Occidental) and Marathon Oil (MRO). Short term-traders should keep an eye on crude futures, /CL, when trading “Energies”
  • Bulls can consider selling a 30-delta put. This may provide lower buying power requirements then buying the stock outright, while also providing a lower loss level. Bears should consider a slightly out-of-the-money call credit spread.

Written by Michael Rechenthin,PhD, tastytrade Head of Research & Development

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES