DailyPlay – Opening Trade (COP) – April 1, 2025

COP Bullish Opening Trade Signal

Investment Rationale

ConocoPhillips (COP) appears well-positioned for stability and potential upside. COP has recently broken out of its trading range as oil prices climb, driving upside momentum. This aligns with broader market trends, where rising crude prices are boosting energy stocks. The surge in oil prices is likely fueled by geopolitical tensions, including threats of secondary tariffs on Russian oil buyers if peace efforts stall, potentially tightening global supply. The stock is forming higher lows and holding above key moving averages, signaling sustained support. A confirmed breakout above a key resistance level around the 200-day SMA could pave the way for further gains.

The company has a strong asset base and a disciplined approach to capital spending, which should help sustain solid cash flows. Additionally, COP’s shareholder-friendly policies, including dividends and buybacks, add to its appeal in a market that values capital returns.

• Forward P/E Ratio: 11.2 (vs. Industry Median: 13.5)
• Expected EPS Growth: 14.8% (vs. Industry Median: 10.2%)
• Expected Revenue Growth: 9.5% (vs. Industry Median: 6.7%)
• Net Margins: 17.4% (vs. Industry Median: 12.8%)

COP offers a strong combination of value, growth, and profitability. The stock trades at a discount relative to its industry peers and is well-positioned for solid earnings and revenue growth, outpacing the broader sector. Additionally, the company demonstrates strong profitability with healthy margins, reflecting its operational efficiency and ability to generate consistent returns. These factors make COP an attractive opportunity for traders targeting upside potential in the energy sector.

Options Trade Idea:
A bullish put credit spread offers a strategic way to capitalize on COP’s support levels. Selling the May 2, 2025, 102/95 put vertical spread provides a defined risk-reward structure. This trade profits if COP remains above $102 at expiration, aligning with both its strong technical support and solid fundamentals.

COP – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 4 Contracts COP May 2 $102/$95 Put Vertical Spreads @ $1.40 Credit per Contract.

Total Risk: This trade has a max risk of $2,240 (4 Contracts x $560) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $560 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 97

Stop Loss: @ $2.80 (100% loss to value of premium)

View COP Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View COP Trade