The Speculator Trade Alert: Buy XOP Calls

Buy the XOP June 2022 $105 calls for $11 or lower. Use a "limit" order, not a "market" order. The current "offer" price is $10.

By Eric Fry Nov 30, 2021 The Oil & Gas Sector Isn't Dead Yet – Buy June 2022 Calls on XOP Hello, Savio. For most folks, oil stocks belong in the company of iconic American memorabilia like hula hoops, drive-in movie theatres, and TV commercials about the cigarette brands doctors prefer most. They each enjoyed their moments in the sun, but those days are long gone. Oil stocks, like hula hoops, still exist, of course. But neither enjoys the widespread popularity of bygone eras. Everywhere you look, the world is turning away from fossil fuels and turning toward renewable energy technologies. Because of this powerful megatrend, many folks assume oil stocks and the returns they can deliver are a thing of the past. But oil stocks may not be as passé as most folks assume. Like the Rolling Stones, they probably have a few solid performances left in them. I think there's a good chance that one such performance is about to begin. I will provide additional details in a follow-up alert, but to summarize this opportunity briefly, oil stocks may be providing a compelling speculation for at least four reasons: Prior to the Omicron variant scare, worldwide oil demand had been recovering more quickly than most industry experts expected. Crude demand in China, for example, is already hitting new all-time highs. Boosting crude production significantly from current levels may not be as automatic and effortless as many investors believe. The Omicron scare has slashed the price of crude by more than $13 a barrel, even though the economic impact of this variant is completely unknown. Based upon the evolutionary tendency of viruses to become less virulent over time, and based upon early anecdotal evidence that this variant is producing mild symptoms, I believe the panic it is inducing could subside fairly quickly. Because of the recent, sudden drop in oil prices, OPEC+ will not likely boost production after this week's meeting. Taken together, these factors indicate to me that speculation on crude oil offers more upside potential than downside risk from current levels. Therefore, I recommend buying a June 2022 call option on the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). This $3.2 billion ETF holds a basket of stocks that operate in the oil & gas production industry. Action to Take: Buy the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) June 2022 $105 calls for $11 or lower. Use a "limit" order, not a "market" order. The current "offer" price is $10. Regards, Eric Fry The Speculator This message was sent: Nov 30, 2021 14:32:51.072 Website: http://www.speculator.com CUSTOMER SERVICE You can reach us via the following e-mail address: Feedback@InvestorPlace.com or by calling us at 1-800-219-8592. Copyright © 2021 InvestorPlace.com Presented by InvestorPlace Media, LLC 1125 N. Charles St, Baltimore, MD 21201 No portion of the above message may be republished, retransmitted or forwarded without express written consent from InvestorPlace Media. Violation of this copyright may result in service cancellation and/or collection of full or partial subscription charges from unauthorized users. Use and/or reliance on this service is strictly at the subscriber’s own risk. InvestorPlace Media LLC will not be liable for the acts or omissions of any third party with regards to delay or non-delivery of Eric Fry’s The Speculator. InvestorPlace Media LLC shall not be liable for incidental, indirect, special or consequential damages or for lost profits, savings or revenues of any kind. To prevent this email message from getting swept up by an overzealous filter, please add our "From" address (customerservice@exct.investorplace.com) to your address book Eric Fry’s The Speculator is published by InvestorPlace Media, LLC and is a general interest newsletter circulated monthly, which is not liable for the suitability or future investment performance of any securities or strategies discussed. Historical investment return examples given are hypothetical, and not to be taken as representative of any individual’s actual trading experience. For access to our full disclaimer and disclosure policy regarding editor securities holdings, go to www.investorplace.com/disclosures or call 1-877-368-6373.