ConocoPhillips lifted by oil futures

ConocoPhillips (NYSE: COP) opened at $70.05. So far today the stock has hit a low of $69.37 and a high of $70.70. As of 12:20, COP is trading at $70.38, up $1.10 (1.6%).

After hitting a one-year high of $74.89 in December, the stock has been slowly recovering over the past four months from a sharp dive it took at the turn of the new year. The front month crude oil futures contract is up 75 cents on the day, and front month gasoline futures are up almost 1%, boosting COP shares in early trading. Recent technical indicators for COP have been bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $60 range. COP hasn't been below $60 since October and has shown support around $67 recently. This trade could be risky if oil prices drop below $60 a barrel, but even if this happens, this position could be protected by the strong historical support around $63, combined with the stock's 200-day moving average, which is currently at $65 and rising.

Brent Archer is an options analyst and writer at Investors Observer. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You When To Dump A Stock. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At press time, Brent neither owns nor controls a position in COP.