EOG still looking solid here

Posted by bakkenexpert

Last week was not good for the Dow but certain Bakken plays such as EOG held their own quite nicely. EOG has formed a solid base with 50+ million shares traded in the $125-$130 region over the last 3 weeks and the stock trading at a number of moving averages (see chart below). Zacks Investment Research also issued a positive note last week on EOG:

We continue to see EOG shares as a core holding in the large-cap E&P space for the company’s demonstrated ability to achieve consistent production growth.

Selling the October 125 puts around $10.50 (and purchasing the 100 puts if you want to hedge) looks to be an attractive play although we concede there might be volatility in the short term due to the barrage of contradicting oil related news.

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