Moving On From Devon and Colgate-Palmolive

After the bell yesterday, Devon Energy (DVN) reported earnings a penny ahead of expectations with revenue coming in just shy of estimates. That was enough to push the stock over $39 this morning and into an area where traders should be grabbing profits from the April 18th call purchase.

The company increased their outlook for 2018 oil production, but after this recent big run, traders should either sell the long May 18 $34 calls and grab the cash or roll the position out and up. These contracts are going for around $5 currently and traded higher earlier this morning. The initial buy was around $2.10, so it is easy to see the appeal in selling here and more than doubling the initial trade. If I were to roll them out, then I would only use the profits, which means risking no more than $2.90 on a new contract. That puts a trader eyeing the July $38 or $39 calls. Personally, I'd lock down the profits....212 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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