Chevron Drops 3.3% to $185 Support After Strait of Hormuz Reopening
Chevron shares dropped 3.3% as oil prices fell on the Strait of Hormuz reopening, sliding to the $185 area at its YTD VWAP and 2022-23 highs. With the 50-day moving average providing support and Schaeffer’s VIX at the 24th percentile, a June call could double on a 9.7% rebound.
1. Oil Price Impact and Stock Movement
Chevron shares fell 3.3% on Friday as oil benchmarks declined following the Strait of Hormuz reopening, reflecting immediate sensitivity to crude supply expectations.
2. Technical Levels and Support
The pullback reached the $185 area, aligning with the company’s year-to-date anchored VWAP and its prior 2022-23 highs, while the 50-day moving average offered an additional technical floor.
3. Options Strategy and Volatility
With a Schaeffer’s volatility index reading in the 24th percentile and reduced call resistance above the $200 strike, a June call option carrying 10.2x leverage is poised to double on a roughly 9.7% stock rebound.