Devon Energy Corp (NYSE:DVN) stock has been a major beneficiary to the oil price boom of the last month. The shares are up up 37% in 2026, and hit a two-year high of $50.70 on March 24. However, despite the uptrend, DVN is flashing a historically bearish signal on the charts.
Devon's 50-day, buy-to-open call/put ratio last week hit the 90th percentile and crossed over 1.0. Per Schaeffer's Senior Quantitative Analyst Rocky White, this has occurred six times in the last three years. The stock has averaged a 10-day loss of 5.2% with a 0% win rate, and a 6.2% loss 21 days later with another 0% success rate.
Another factor to consider is DVN's 14-Day Relative Strength Index (RSI), deep in "overbought" territory at 74. Should oil prices cool or the U.S.-Iran war meet a sooner-than-expected resolution, it could be a sudden profit-taking selloff for oil stocks like Devon.
Premium is affordably priced right now. DVN's Schaeffer's Volatility Index (SVI) of 40% sits in the 17th percentile of its annual range, indicating options traders are pricing in unusually low volatility expectations at the moment.