US markets, including the Nasdaq, climbed after a US military operation captured Venezuelan President Nicolás Maduro and brought Venezuela’s oil sector under US control. The energy sector led this rise due to increased geopolitical risks, while tech stocks on the Nasdaq remained stable. Despite these geopolitical changes, the Nasdaq 100 and other major US indices, like the S&P 500 and Dow Jones Industrial Average, reached record highs. This shows strong confidence in both tech and cyclical sectors, with robust growth drivers in technology.

Chevron Stock Increases

Chevron experienced a significant stock increase, which also helped ExxonMobil and ConocoPhillips due to potential new opportunities in Venezuelan assets. Oilfield services and refiners rose in anticipation of increased Venezuelan oil output, which would benefit refining margins. Gold and the US dollar saw slight gains, but the situation also brought uncertainty and controversy worldwide. The US strategy for Venezuelan oil indicates a shift towards securing energy supplies, creating a new way for private companies to work with government resources. The Nasdaq held important support levels, suggesting potential gains if tech earnings stay strong. However, any rise in geopolitical tensions could lead to a decrease in growth stocks, impacting the Nasdaq’s performance. Given the market’s positive response to the US gaining control over Venezuelan oil assets, it’s wise to consider bullish positions in the energy sector. Call options on major firms like Chevron (CVX) and oilfield service companies like SLB are appealing. These trades take advantage of immediate positive sentiment and the long-term potential for rebuilding Venezuela’s infrastructure.

West Texas Intermediate Crude Futures

This situation is notable, as West Texas Intermediate (WTI) crude futures are testing the $95 per barrel mark, a level that hasn’t been seen since the supply shocks of 2024. Venezuela’s oil production, which fell below 800,000 barrels per day last year, has significant potential for growth and could change global supply chains. This creates a strong fundamental support for energy stocks for the foreseeable future. In the derivatives market, implied volatility for energy stocks like Chevron has surged over 35% in recent sessions, making options more expensive. Traders might consider using bull call spreads to manage risk and lower entry costs for bullish bets. Selling cash-secured puts is another viable strategy for those willing to buy shares at a lower price if the rally cools off. While Nasdaq tech stocks have remained stable, the heightened geopolitical risk suggests a need for a hedge against sudden changes in sentiment. Buying protective puts on the Nasdaq 100 ETF (QQQ) could provide protection against a possible shift away from growth stocks. This would serve as a cost-effective insurance policy if the international reaction to the situation in Venezuela turns negative. Overall market fear, indicated by the VIX, remains elevated above 18, significantly higher than the lows seen in late 2025. This signifies ongoing tension despite the equity market rally. Purchasing VIX call options provides a direct hedge against a market downturn or an escalation in geopolitical conflict. The rebuilding of Venezuela’s oil infrastructure is a long-term process, not a quick fix. Therefore, longer-dated call options, or LEAPS, on service companies like Halliburton (HAL) may be an effective way to invest for the long haul. This approach contrasts with short-term futures trades on crude oil, which will react more swiftly to immediate news. Create your live VT Markets account and start trading now.

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