The bulls are having a party today as the Dow is up 253 points to 6,800. The financial stocks are having a huge rally but were are more interested in what ConocoPhillips (COP, $37.86, up $1.33) and Exxon Mobile (XOM, $66.79, up $2.22) are doing right now.

The dollar is weaker and oil is up which has pushed these two stocks higher by over 3%. We already had a trade going in Exxon Mobile with the April 70 calls (XOMDN, $2.20, up $0.145) which was profiled last Thursday (3/5) at $1.25. If the call options can get to $2.50 that would be 100%. Initial stops could be set at $1.75 to protect our profits. The calls opened at $2.02 and have traded as low as $1.93.

I did a full disclosure on the ConocoPhillips trade. I bought 10 contracts of the March 40 calls (COPCH, $0.79, up $0.25) at 58 cents yesterday and they closed at 54 cents on Monday. Today, they are currently up 40% and have traded as high as 86 cents.

My target was 75 cents to $1.00 with a stop set at 40 cents. I am currently up $210 and will probably raise the stop to 69 cents or I may sell it before the day is out.

The rally has helped the position and I’ve been mentioning we are due for a bounce. I doubt this will lead to a full-fledged rally and it could be just a bear market bounce so we will have to see. In the meantime, manage your positions accordingly.

Rick Rouse