Chevron (CVX) Offering Possible 71.23% Return Over the Next 24 Calendar Days

Chevron's most recent trend suggests a bearish bias. One trading opportunity on Chevron is a Bear Call Spread using a strike $117.00 short call and a strike $122.00 long call offers a potential 71.23% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $117.00 by expiration. The full premium credit of $2.08 would be kept by the premium seller. The risk of $2.92 would be incurred if the stock rose above the $122.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Chevron is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Chevron is bearish.

The RSI indicator is at 41.73 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

---

LATEST NEWS for Chevron

Bulls And Bears Of The Week: Chevron, Disney, Target And More
Sat, 24 Aug 2019 19:04:37 +0000
Benzinga has examined the prospects for many investor favorite stocks over the past week. It was another tough week for the markets, with the Dow Jones industrials and the S&P 500 dropping 2% or so and the Nasdaq more than 3% lower when all was said and done. The trade war with China ratcheted up again and commentary from Federal Reserve Chair Jerome Powell did not please the president (who apparently still wants to buy Greenland).

3 Top Dividend Stocks With Yields Over 4%
Fri, 23 Aug 2019 17:00:00 +0000
Dividend investors have a lot to like about these companies.

U.S. Gasoline & Distillates Stocks Up, Cushing Supplies Slump
Fri, 23 Aug 2019 13:17:01 +0000
The federal government's EIA report revealed that crude inventories fell by 2.7 million barrels for the week ending Aug 16.

Debt Is a Way Bigger Problem for Exxon Stock than You Might Think
Fri, 23 Aug 2019 11:10:19 +0000
Several of my InvestorPlace colleagues have written about Exxon Mobil (NYSE:XOM) lately. Most of the commentary quite positive. Several recommending you buy Exxon stock for the long haul. Source: Jonathan Weiss / Shutterstock.com David Moadel's August 20 headline read, Fill Up on Exxon Mobil Stock Now for an Imminent Rebound. Tim Biggam's August 14 article stated, Exxon Mobil Stock Is Ready to Start Pumping Again. I'm nowhere near as enthusiastic about the integrated oil giant's future stock trajectory, but I appreciate their confidence nonetheless. InvestorPlace – Stock Market News, Stock Advice & Trading TipsIn my most recent article about XOM stock, I recommended that investors ought to wait until it dropped into the $60s before buying. On July 9, the date my article was published, it was trading around $76. As I write this, it's trading around $69.67. A couple of days earlier it was even lower. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Time to buy?Before you do, I'd consider the ramifications of its recent fixed and floating notes offering on the company's debt before pulling the trigger. Here's why. Exxon Stock and DebtToo often, we look at a company's balance sheet, see that its long-term debt is only a fraction of its total assets, and assume that it's financially sound. Chances are you're right, but it can't hurt to understand the structure of its debt better to be sure. Exxon Mobil issued $7 billion of floating and fixed-rate notes on August 14. The company plans to use the net proceeds of $6.975 billion to refinance some of its existing commercial paper, which averages an interest rate of 2.37%. XOM will also use some of these funds for other general corporate purposes, including working capital, acquisitions, capital expenditures, and other business opportunities. I have to admit; I would love to be in a position to borrow $1.5 billion at 3.095%, repayable in 30 years. Heck, I could be dead in 30 years. I wouldn't be nearly as excited about owning Exxon Mobil's 2049 notes. A little over 3% for three decades. It's an excellent deal for Exxon Mobil, though. Moody's (NYSE:MCO), although it gives the $7 billion in notes an Aaa rating, it does have some reservations. According to Pete Speer, Moody's Senior Vice President: "ExxonMobil's negative free cash flow and rising debt levels in the first half of this year are pressuring its credit profile, particularly with oil prices averaging mid-cycle levels during the period. While this notes offering is refinancing some of the company's debt on a longer-term basis, the company retains ample flexibility to reduce debt through asset sales and strengthen its credit metrics."It goes on to say the Aaa rating, which is better than many of its peers, could get downgraded in the future if it continues to generate negative free cash flow while its level of debt moves higher. How Much is Too Much?In its prospectus for the notes, the company mentions that its long-term debt, currently $19.0 billion as of the end of June, is 8.7% of Exxon Mobil's total capitalization. Add in the $7 billion in notes and it increases to 11.6% of its total capitalization.That's still a minimal amount. By all accounts, Exxon Mobil's debt is perfectly manageable. However, what happens if it decides to make a multi-billion acquisition? As Moody's suggested, the company's free cash flow was negative in the first six months of the year. A significant acquisition would most likely add to that shortfall.From where I sit, Exxon Mobil's free cash flow for the first six months appears to be positive to the tune of $2.9 billion (net cash provided by operating activities of $14.3 billion minus capital expenditures of $11.1 billion). However, Moody's likely makes some oil-related adjustments to come to a negative number. Regardless, I did see an article about free cash flow that piqued my interest. According to S&P Global Market Intelligence, Chevron's (NYSE:CVX) free cash flow over the past 12 months was $18.5 billion, 25% higher than its GAAP profit for the same period. Meanwhile, XOM generated $11.3 billion, 36% lower than its GAAP profit. Furthermore, Barclays believes that Exxon Mobil's free cash flow situation is about to get even worse as it ratchets up its capital investment just as oil prices appear to be falling again. So, while Exxon Mobil has managed to issue debt on a fixed-rate basis between 1.9% and 3.1%, if its free cash flow shrinks, it will have less cash available to pay down the debt in the future. The Bottom Line on Exxon StockOwning XOM stock has been a mug's game over the past decade. I don't think it's going to get much better over the next decade as the world continues to move away from oil. That said, it's got an excellent dividend yield a tad under 5%. If you need to park some money in an income-bearing investment, you could do worse than owning XOM. You could own some of their notes.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Debt Is a Way Bigger Problem for Exxon Stock than You Might Think appeared first on InvestorPlace.

Chevron Kicks Off Their “Engineered With Purpose” Campaign With the Launch of the Delo Traveling Technology Lab
Thu, 22 Aug 2019 18:30:00 +0000
As part of the announcement at GATS, Chevron unveiled a new take on its mobile education center, the Delo Traveling Technology Lab, with interactive technologies, including virtual (VR) and augmented (AR) reality exhibits.

Related Posts