Pair trade! 5% each side.
Long CVX @ $85.41
Short COP @ $39.81
News broke this morning that Chevron (CVX) is buying Noble Energy in an all-stock transaction. Obviously, shares of the buyer (CVX) fell on the news. I think it's likely to be an astute purchase - especially since it's using stock, not cash.
Since I don't want to take undue oil exposure, I decided to pair it off against Conocophillips. I almost chose XOM, but decided not to.
I also pushed the position size. When I go big on a trade, it's an indication that I plan to flip it pretty quickly. Big trade, quick trade. That's how I do it.
I'm not an oil analyst, but have been following the sector for a long time. Chevron is great at this sort of thing - transacting and saving cash. So I'm betting they get this right.
Long CVX @ $85.41
Short COP @ $39.81
News broke this morning that Chevron (CVX) is buying Noble Energy in an all-stock transaction. Obviously, shares of the buyer (CVX) fell on the news. I think it's likely to be an astute purchase - especially since it's using stock, not cash.
Since I don't want to take undue oil exposure, I decided to pair it off against Conocophillips. I almost chose XOM, but decided not to.
I also pushed the position size. When I go big on a trade, it's an indication that I plan to flip it pretty quickly. Big trade, quick trade. That's how I do it.
I'm not an oil analyst, but have been following the sector for a long time. Chevron is great at this sort of thing - transacting and saving cash. So I'm betting they get this right.
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