Chevron on the move....

Posted Feb 2nd 2007 10:45AM by Victor Schiller
Filed under: Major Movement, Earnings Reports, Good news, Chevron Corp (CVX), Options

Chevron (NYSE:CVX) opened today at $73.80. So far, the stock has hit a low of $73.33 and a high of $73.97. As of 9:57 this morning, CVX was trading at $73.45, down $1.02 (1.37%) on light to moderate volume.

After hitting a one year low of $53.76 on March 10, 2006, the stock worked its way up a jagged path to a high of $76.20 on December 14, 2006. Yesterday the company reported earnings that topped its own record for the biggest annual profit by a U.S. company last year, racking up profits that amounted to $4.5 million an hour for the world's largest publicly traded oil company. The technicals for Chevron have been slightly deteriorating lately but S&P gives the company a its highest 5 STAR (out of 5) strong buy rating with a current 12-Month target price of $84.

For a bullish hedged play on Chevron, I would consider June covered call at the $75 level. There is even a nice dividend on the stock with a 2.8% yield.

Vic Schiller is an analyst on the move at Investors Observer.

DISCLOSURE NOTE: Mr. Schiller owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

Tags: Chevron