Conoco-Phillips is up 26% in 2013. That’s for one of the largest diversified energy companies in the market, nearly $100 billion market cap. The stock has rallied right up to its 2008 all-time high:
The stock actually breached the $73.15 high from 2008 in its move higher last week, but it has stalled this week, currently trading right at that level.
We’ve seen major U.S. multinationals make some big moves upon breaking their prior bull market highs, with JNJ a good example to start 2013, and BA and FDX more recent examples.
COP has held up quite well despite the rapid move lower in oil in the past 6 weeks. The stock reports earnings next week. It has a slightly rich valuation to its mega-cap peers, XOM and CVX, but better expected earnings prospects (and better recent execution), as well as a slightly higher dividend yield.
With implied volatility relatively low (mid-teens), upside call options could be an attractive way to play a convincing breakout that holds. We don’t have that conviction yet, but this is near the top of our watch list.