Big Money on Big Oil

Oil and energy is a booming sector right now, oil hitting seven-year highs last week.

And this big-money trader is going bullish on (Devon Energy Corp. NYSE:DVN):

We’re looking at a long out-of-the-money call spread here, buying the March 18 $60 calls and selling the March 18 $65 calls for a net debit of 81 cents per contract.

DVN opened at $52.40 this morning – but this trader thinks a run all the way to $60 is in the cards for this energy company.

And I don’t disagree. I might look at upside calls here, but I like energy across the board – particularly BP, which my Profit Revolution members had the chance to make a 60% eight-day profit on last week…

By playing THIS pre-earnings pattern.

But BP and DVN aren’t the only energy names on my radar.

  1. Energy Transfer LP Unit (NYSE:ET)
  2. BP plc (NYSE:BP)
  3. Exxon Mobil Corp (NYSE:XOM)

Airlines, Banks, & Healthcare –
Today’s Watchlist

Find my price target on the airline industry…

What bank I’m going long on…

And how I’m fading Pfizer after poor earnings…

In today’s Watchlist.

  1. US Global Jets ETF (NYSEARCA:JETS)

After being bludgeoned the last few months, traders are speculating on the airlines finally getting a lift. I’ve been seeing some huge big-money flows into this sector, and it may be time to go bullish.

  1. Financial Select Sector SPDR Fund (NYSEARCA:XLF)

Banks continue to show strength – and yesterday, I told you that we targeted BAC in the Profit Revolution live room – and we made 100% this morning after just two trading days.

My next target? Citigroup. There’s a lot of big-money action here, and the options are cheap. It might be worth going long this name…

And that’s exactly what I’m looking at in my next Profit Revolution session, live at 2PM ET.

Click here if you’re interested in joining.

  1. Pfizer Inc. (NYSE:PFE)

The pharma stock fell back to $45 this morning after issuing bad guidance in its fourth-quarter earnings report. This stock was overbought before the report, so I expect the fall to continue.

There have been put buyers at the $50 strike for a while, and it might be worth a shot for Feb $50 puts on a post-earnings PFE play.

The Volatility Waiting Game

Yellow Traffic LightThe market didn’t move much yesterday – something I call an “inside day,” when the market moves in a tight range and doesn’t really break out one way or the other.

My light is still yellow, but we might be on hold for a couple of days as the market waits for the Consumer Price Index (CPI) to come out on Thursday and give us a gauge on inflation.

During today’s Profit Takeover show, I broke down my winning BP trade.

Missed it? Tune into tomorrow’s show at 10:30 AM in the main room.

Until then,

Mark Sebastian
Founder, Profit Takeover


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