Why FANG Still Looks Constructive

As oil prices experience upward pressure once again, the market is starting to reward select energy exploration and production names. While parts of the market continue chopping sideways, a handful of energy stocks have continued respecting trend structure and grinding higher without much technical damage along the way. One name that keeps setting itself apart from the crowd is FANG, which has spent most of the year in a powerful uptrend, consistently pushing out to fresh 52-week highs. Even after a brief pause in mid-April, buyers stepped right back in, and now the stock is resuming higher again while holding above all of its major moving averages, and notably, despite the strong run, shares are still trading comfortably within the upper Keltner Channel rather than stretched to extreme overbought levels.

⚡What if You Could Win Even When Trades Fail? Chuck Hughes’ Trade Like a Champ reveals the ultimate factor he uses to target consistent success in the market—get your free copy now. 🎯

In terms of how I would look to set up a trade for this one, this looks like one where a defined-risk bullish options structure may make more sense than simply buying calls outright. With FANG now trading north of $200 per share and option premiums carrying elevated time value, an in-the-money call debit spread offers a cleaner way to participate in the trend while also creating some downside cushion if oil prices were to cool off temporarily. In simple terms, the spread structure helps reduce upfront cost while still allowing traders to benefit from continued strength in the stock. In fact, one current call spread setup offers a 61.3% profit potential if FANG shares are higher, flat, or even lower by as much as 10% at expiration, which creates a fairly forgiving range for a bullish trade thesis.

A lot of traders can spot momentum, but the bigger challenge is knowing how to structure trades around it without taking unnecessary risk or overpaying for premium. That is exactly where our Optioneering Newsletter comes into play, showing readers the specific option strategies we pair with high-conviction technical setups like this one for just a $1 first-month trial. If you want to see how we identify these opportunities and structure trades around them in real time, now is a great moment to take the next step. Begin your trial period to Optioneering today!

Wishing You the Best in Investing Success,