Call Options on DVN on 9/20/2021

Devon Energy Corporation (DVN), an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 3,942 gross wells. 

On Friday, Baker Hughes (BKR) reported that the U.S. rig count is up 9 from last week to 512 with oil rigs up 10 to 411, gas rigs down 1 to 100, and miscellaneous rigs unchanged at 1. The U.S. Rig Count is up 257 rigs from last year's count of 255, with oil rigs up 232 gas rigs up 27 and miscellaneous rigs down 2 to 1. 

The increase in rig counts is bullish for oil prices. We expect higher oil prices and higher share prices for Devon.

We will trade October 15th Call Options

Last Trade: $29.79

Trading Range: $7.73 to $31.99

Trade Buy 1 October $29.00 Call at $1.95 For a net debit of $1.95 Profit/Loss Analysis Breakeven at $30.95 Maximum profit is unbounded Maximum loss is ($195.00) at strike of $29.00 Closing Summary Sold 1 October $29.00 Call at $9.75

Position closed on 10/6/2021 at price of $9.75 with a 400.00% gain in 16 days.

Updates

10/6/2021 12:28:29 PM

DVN call options closed at $9.00

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