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Oil prices started jumping back up toward $66 per barrel on Tuesday as news  leaked from various OPEC delegates that Saudi Arabia is looking for ways to push oil prices up toward $80. This is great news for energy stocks like ConocoPhillips (NYSE:COP) because higher oil prices tend to lead to wider margins.

Traders responded to this news by pushing COP up above its prior 52-week high of $61.32, and we think this is just the beginning. We expect the stock to continue climbing up toward longer-term resistance at $64 in the run-up to the company’s earnings announcement on April 26, before market open. We’re buying the $65 strike calls to take advantage of this, as the out-of-the-money option should see a nice increase in implied volatility and extrinsic value as the price of the stock gets closer and closer to it.

‘Buy to open’ the COP May 65 Call (COP180518C00065000) for a maximum price of $1.25.

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