Why Bulls Should Buy the Dip on Chevron Stock

Chevron Corp (NYSE:CVX) stock has pulled back to highs from 2022/2023, an area that coincides with its year-to-date anchored volume weighted average price (AVWAP). There’s also potential for an undercut of the 50-day moving average into support that could trap bearish bettors.
 
The shares are trading into the 185 strike, which could act as put support as well. Digging deeper, resistance at the 200-strike call reduces next week, eliminating an overhead resistance level.

 

With a Schaeffer’s Volatility Index (SVI) sitting in the 24th percentile of its annual range, premium is appropriately priced at the moment.
 
Our recommended June call has a leverage ratio of 10.2 and will double on a 9.7% lift in the underlying shares.