A Breakout Trend Fueled by Energy Chaos

Energy has been the clear point of strength across this tape, and it hasn’t been subtle. The group began the year with strong relative momentum, but since the escalation of conflict involving Iran, that leadership has only accelerated as capital aggressively rotates into the space. With a meaningful portion of global oil and LNG supply disrupted and key transit routes like the Strait of Hormuz under pressure, pricing has surged and the equities have responded accordingly.

Flex LNG Ltd (FLNG) is a clear example of that dynamic asserting itself. Shares began turning higher last year following a PowerTrend Buy signal in July ’25, and that condition has remained intact ever since. Over the past three months, price has continued to stair-step higher, recently breaking out to a fresh series of all-time highs, including again just this past week. From a technical standpoint, sustained positioning above the 10-month moving average signals persistent institutional demand, aligning with the tightening global LNG transport backdrop.

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From a trading perspective, this is the type of setup where using call options can make sense, especially given the relatively low cost to get involved. Buying a call allows you to control shares with a fixed amount of risk upfront, while still giving you meaningful upside if the stock keeps climbing. In this case, because the options aren’t carrying excessive premium, the leverage works in your favor if the move continues. For example, if shares were to move roughly 10% higher by expiration, a properly selected call could potentially return around 97%, though that outcome depends on timing and how the stock actually trades from here.

Setups like this—where technical strength and macro tailwinds intersect—are exactly what we track daily. For traders looking to go a step further and see how we translate these patterns into specific options strategies, the Optioneering Newsletter is currently available with a $1 first-month trial. This is our flagship trading newsletter and it offers you a view into the top option setups that we spot each week. Begin your trial period today!

Wishing You the Best in Investing Success,