Trader Mike Khouw Bets on More Upside in Surging Oil Stock
Oil prices keep climbing and trader Mike Khouw thinks one energy name still has room to run. Here's his trade.
Oil isn't done running, and neither is at least one energy stock on Mike Khouw's radar. The veteran options trader broke down exactly how he's positioning himself to capitalize on continued momentum in a name that's already been surging alongside crude prices.
Khouw's approach leans on the options market, where savvy traders can define their risk while still capturing upside in a volatile commodity-linked sector. When oil trends, energy equities tend to amplify those moves — and that leverage cuts both ways, which is exactly why using options makes sense here rather than buying shares outright.
Read more Apple's Foldable iPhone Duo Could Push AAPL EPS Higher →
The broader energy trade has legs as long as crude holds its upward bias. Supply constraints, geopolitical tension, and demand resilience have all contributed to oil's recent push higher. If those tailwinds persist, the stock Khouw highlighted could keep outperforming even from current elevated levels.
For retail traders watching this space, the takeaway is simple: don't sleep on energy just because prices have already moved. Momentum trades exist for a reason, and a structured options play lets you participate without betting the whole account on a commodity known for sudden reversals.
Continue reading at US Top News and Analysis.
