During the recent equities market plunge virtually every major U.S. sector breached the pivotal 50-day moving average. Among the sea of selling, the energy sector come out somewhat unscathed as it refused to break this key level despite multiple attempts. When the market sells off savvy options trading investors keep an eye out for sectors or industries that are exhibiting strength in the face of all the weakness. Often times the stocks that hold up best during sell offs are those that lead the market higher once the selling pressure abates.

Among all the energy stocks, oil refiners are on the brink of breaking out of substantial bases formed over the past month. The likes of Tesoro Corp. (NYSE: TSO), Valero Energy (NYSE: VLO), and Western Refining (NYSE: WNR) look poised to pop. A break above resistance may trigger a bevy of buying to fuel these stocks higher. Those seeking bullish exposure in the energy space may look to purchase call options. Consider the TSO May 25 Call up to $2.25, the VLO May 28 Call up to $2.35 or the WNR May 16 Call up to $2.15.

Remember that earning season is rapidly approaching. Be wary of holding options through earnings announcements. TSO and VLO both report earnings on April 25th, and WNR reports on May 6.

Tesoro Corp. (NYSE: TSO)

(Source:  MachTrader)

Follow Tyler Craig on Twitter@TylersTrading.