Back on February 2nd, we initiated a long-term bullish bet in Chevron $CVX January 2024 150-strike calls. You can read all about our thinking at the time here. In short, we were of the belief that a big breakout in the energy sector was appearing likely.
As you can see from this updated chart, our bet proved to be prescient. We’ve already taken back our original risk capital in this trade when we sold half of our position on March 2 at double what we originally paid. That has given us the super power to continue holding the remaining half position until now, achieving more gains.
While we still continue to our remaining January 2024 calls, the chart action suggests to us that another leg higher in $CVX may be imminent. And with the big round number price level — $200 — dangling above, we think there’s an opportunity to make an additional tactical bet to augment our current gains in this position.