Photo by Zbynek Burival on Unsplash

Last Thursday, the price of West Texas Crude (WTI) settled above $90 per barrel for the first time since October 2014.

That's no surprise to me; I've been bullish on it since early 2021.

While the development of green energy tech is promising and necessary, the reality right now is that oil is still king. In a world recovering from the chaos and disruption caused by the pandemic, the short-term work of handling the world's energy needs is going to rely on the sources we've been using for over a century now - fossil fuels.

It's just the way it is. In a crisis, you go with what's reliable and what you know works. And investors would be smart to watch the "traditional" energy sectors for big moves.

That being said, momentum in oil is getting overbought, which means we're likely headed for a short-term pullback. Think of it as a bit of panic-driven overreaction. That also happens in a crisis.

I expect it'll pass. Longer-term, we're looking at a spike. I still see oil trading up to $100 (and beyond) by mid-summer. That means we've got a great window of opportunity here - any pullback right now gives us a chance to get in quick and make good profit on energy sector trades, especially options.

The pick I've got today is riding high on one of the best Q4 earnings reports we've seen so far this year, and you could easily double your money on it...

My Favorite Energy Trade Right Now

So here it is: I'm talking about Exxon Mobil Corp. (XOM).

Recent years have seen the company struggle with heavy spending in order to support the broadening of its energy technologies, investing in areas like carbon capture and renewables. The middling performance of oil during the pandemic hasn't done it any favors lately, either, with shares falling to a five-year low around $32 in October of 2020.

But it's been climbing back up as the pandemic recovery continues, and I think we're on the verge of seeing some serious growth for this household name.

On the 1st, the company reported it's fourth-quarter results, which included GAAP earnings of $8.87 billion. That's up from a $20.07 billion loss in the same period a year ago.

Exxon also managed to generate $48 billion of cash flow from operating activities, its highest since 2012, and it's paying down debts. Nine billion dollars in debt was paid during the fourth quarter, bringing the repayment to a total of $20 billion since the start of 2021.

Those are solid numbers, and shares jumped as much as 9.63% in last week's trading and are currently hovering around $81, up 153% over those pandemic doldrums.

But as I said, I wouldn't be surprised if we see a short-term pullback in WTI, and that would likely bring shares of XOM back down, before rising again as the price of oil noses back up.

That's our window. Here's exactly what to do...

If shares of Exxon trade down to $77 by Feb. 25, let's buy the XOM May 20, 2022 $77.5/$80 call spread for $1.10 or less. Plan on exiting for a 100% profit or if shares of XOM close below $72.

Even though the recovery is progressing, we've still got a way to go, and you can see the evidence of it everywhere you look. Supply chains are still disrupted, market volatility is still at record highs, and inflation is out of control.