Take $300 Profit on Chevron Call Option as Geopolitical Tensions Rise. Traders Run to Bonds and Bitcoin.

Bumpy start to the trading day develops.

This morning, we are taking a $300 (106%) profit on a recently recommended Chevron call option as the market reacts to a rise in geopolitical tensions.

• SOLD - Chevron January 17, 2025 $160 Call Option up to $4.25. Bought to open 11/5/2024: $2.83. Closed 11/18/24 intraday price: $5.63. Return for this trade: $300/contract (106%).

Image courtesy of shutterstock.com

Our ESP portfolio is in good shape this morning with eight distinct positions all holding their own. Several of the holdings are back in their BUY zones. As things clear up, I expect to be adding more picks. For now, we are in wait and see mode as the geopolitical situation develops.

Market Update

The major indexes are struggling this morning as the situation in Ukraine is fluctuating after recent events involving U.S. weapons being used against Russia. During times like these, it’s best to keep our powder dry and see how things develop.

The New York Stock Exchange Advance Decline line (NYAD) is back below its 50-day moving average as stocks sell off in response to the ongoing events in Ukraine. On the other hand, the RSI is closing in on an oversold reading of 30, which would set the market up for a potential rally should things calm down between Russia and Ukraine.

The bond market is rallying as it often does when traders get jittery. The U.S. Ten Year Note yield (TNX) is back below 4.4%. A move below 4.3% could send TNX toward a test of the 200-day moving average near 4.2%.

Bitcoin remains overbought (RSI above 70), but its recent consolidation has it trading inside its upper Bollinger Band, which gives it room to rise further. Eventually we will see a pullback here. Still, given its current strength, any pullback to the 20-day moving average is likely to provide an excellent buy on the dip opportunity.

Thus, as I’ve noted recent events have turned Bitcoin into a money magnet. Our remaining Bitcoin trade is still open.

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