Imagine it’s the 1920s—an era of roaring innovation, boundless optimism, and the open road.
America was on the move, and so were two brothers, Frank and L.E. Phillips. They had a vision: to fuel the nation's dreams, one mile at a time.
Taking their latest gasoline blend on a test drive down the legendary Route 66 in Oklahoma, they pushed their car to an exhilarating 66 miles per hour.
That moment of speed, freedom, and ambition gave birth to the name “Phillips 66,” a brand that would soon become a symbol of American ingenuity and progress.
But success never comes without its fair share of obstacles.
Phillips 66 didn’t just fuel cars—it fueled controversies, too.
Over the decades, the company has been at the center of the energy sector’s biggest debates.
From the Texas oil boom to the heated environmental clashes over refinery emissions and pipeline projects, Phillips 66 has walked a tightrope between innovation and public scrutiny.
One of the most polarizing chapters in its history came with its involvement in the Dakota Access Pipeline (DAPL), a project that sparked nationwide protests and ignited passionate debates over environmental impact and indigenous rights.
As protesters clashed with law enforcement in frigid conditions, Phillips 66 pressed forward, unwavering in its belief that infrastructure investment was crucial for America's energy future.
Then came the Biden administration, which took a starkly different stance on energy infrastructure.
One of its first moves was to halt the Keystone XL pipeline, signaling a shift away from fossil fuels and towards renewable energy.
This policy change put immense pressure on companies like Phillips 66, forcing them to navigate an increasingly complex regulatory landscape.
Environmental restrictions tightened, and major projects faced delays or outright cancellations.
For Phillips 66, the stakes had never been higher.
Fast forward to today, and history is once again being rewritten.
In a stunning development, President Trump has declared a “national energy emergency,” signing an executive order that promises to rewrite America’s energy future.
“We will drill, baby, drill,” the president declared in his inaugural address.
“We have something that no other manufacturing nation will ever have – the largest amount of oil and gas of any country on Earth, and we are going to use it. We’re going to use it.”
Trump’s aggressive push to unlock what he calls “liquid gold” aims to cut energy costs for Americans in half within a year.
And with regulations being stripped away, Phillips 66 finds itself perfectly positioned to seize the moment.
This bold move has sent shockwaves through the market, and our Pre-Run-Up Trigger has fired on PSX, signaling a high-probability opportunity as investors rush to position themselves ahead of the company’s upcoming earnings report before the market opens on January 31st.
The Pre-Run-Up Pattern: Why Now?
The Pre-Run-Up is a powerful pattern that identifies the period when a stock begins to build momentum in anticipation of its upcoming earnings report.
Historically, stocks tend to experience a steady climb in the days leading up to earnings as investors position themselves early, betting on a positive surprise or strong performance.
Why Phillips 66?
In the last five years, our Pre-Run-Up trigger has fired on PSX eight times, delivering six wins versus two losses for an overall gain of 180%.
More impressively, in the past three years, this trigger has a 100% success rate with five wins generating a staggering 362% overall return.
The Trade Setup
Stock: PSX (Phillips 66)
Strategy: Long Call (Single Leg)
Trade Details:
- Buy-to-open PSX January 31, 2025, $124 Call
- Debit: $1.60 ($160 per contract)
- Max Risk: $160
- Expected Profit: 40% gain or exit by January 30, 2025
Pro Tip: Use a limit order to get the best fill price.
Trade Visualization
Trade Visualization
Visualizing your trade setup can make execution clearer and more intuitive. Below are key visualizations to guide your trade:
Tastytrade Platform Screenshot: This shows the trade entry details, including the contract symbol (PSX Jan 31, 2025, $124 call), strike price, and debit paid. Use this to confirm your order matches.
OptionStrat Risk/Reward Visual: This highlights your maximum risk, potential reward, and breakeven price, ensuring the trade aligns with your goals.
Managing the Trade
- Profit Target: Exit at 40% gain.
- Stop Loss: Exit at 40% loss.
- Final Exit: Close position by January 30, 2025, regardless of profit or loss triggers.
Beginner-Friendly Breakdown
We’re buying this call because we expect PSX to rise above $124 before expiration, driven by bullish market momentum and strong earnings potential.
Options provide leverage, meaning you can control 100 shares of PSX for a fraction of the cost compared to buying the stock outright.
And the best part? Your risk is capped at the amount you invest in the trade.
Final Thoughts
The opportunity in Phillips 66 is crystal clear.
With the government’s aggressive push for energy dominance and our Pre-Run-Up trigger lighting up, the odds are stacked in our favor.
Remember, successful trading is about preparation and execution.
Stay focused, follow the plan, and let's capitalize on this setup!
Trade smart, stay disciplined.