A major turnaround stock hitting targets early

Dear WallStreetZen Member,

This week, our Smart Leverage Alert centers on BP (BP).

BP is one of the world’s seven oil and gas “supermajors,” operating across the entire energy value chain in roughly 60 countries. After a long stretch in the penalty box, BP is in the middle of a genuine turnaround, and the market is taking notice.

The setup is a momentum story powered by a fast-improving balance sheet. BP has climbed nearly 49% over the past year and almost 18% in three months, trading right against its 52-week high. The latest leg came after the company hit its debt-reduction target roughly a year ahead of schedule, freeing up room for buybacks and distributions, while firm crude added to the tailwind. There’s a forward catalyst too: new CEO Meg O’Neill will lay out BP’s refreshed strategy at a December capital markets day, sharpening the focus on its core oil and gas business.

Wall Street is on board. The analyst consensus rates BP a Strong Buy, with price targets ranging up to $58.

Our Zen Ratings model agrees emphatically. BP earns an A rating — the equivalent of a Strong Buy — and places it in the top 1% of more than 4,600 stocks. BP is also the 2nd highest-rated name in the A-rated Oil & Gas Integrated industry.

Behind that score, BP ranks in the top 5% for Growth, the top 5% for Momentum, the top 2% for Sentiment, and the top 1% for our AI factor — a growing business with powerful trends, strong market confidence, and quant signals pointing to more upside.

Our Logic

With Zen Options Essentials, we use "Smart Leverage" — Deep-In-The-Money options that let you control shares for a fraction of the cost, with your maximum risk strictly defined from day one.

The "Smart Leverage" Setup: BP Long Call

Given the strong fundamental case and the powerful uptrend in BP, here’s how we’re structuring the trade using Smart Leverage — Deep-In-The-Money calls that move nearly dollar-for-dollar with the stock, but with strictly defined risk from day one.

Instead of committing about $4,939 to own 100 shares outright, a Deep-In-The-Money Call lets you control those same shares for about $954.

• The Play: $42 Strike Call (Expiring Apr 16, 2027)
• Delta: 0.8824 — Right in our sweet spot. This option moves nearly dollar-for-dollar with the stock. You get the upside with significantly less capital at risk.
• Intrinsic Value: ~87% — The vast majority of what you pay is real value, not time decay. This is what separates a Smart Leverage setup from the kind of speculative options trades that blow up amateur accounts.
• Leverage Multiple: 3.65x — Every dollar moves 3.7x harder than the stock, while the deep ITM strike still keeps meaningful downside protection versus a naked speculative call.
• The Target: For this position to double (+100%), BP only needs to reach approximately $60.32 — a roughly 20% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A roughly 20% move in BP stock would be a solid return for shareholders. In this Deep-In-The-Money option, that same move has the potential to double your investment while putting only about $954 at risk instead of $4,939.

That’s the power of Smart Leverage: stock-like upside with a fraction of the capital and strictly defined risk from day one.

What To Do Next?

BP is just one of the setups our Zen Options Essentials TradeFinder identified this week.

And the best part? You don't need to spend hours doing research to find these trades. The TradeFinder does the heavy lifting — scanning for Deep-In-The-Money options with the optimal Delta, the right Intrinsic Value, and the right Leverage Multiple — so you can evaluate a trade like this in minutes.

How is that possible?

Because the best options trades aren't about picking exotic strategies or timing the market perfectly. They're about finding great stocks…and using Smart Leverage to control your risk while amplifying your upside.

EXACTLY what the Zen Ratings model is built to find.

EXACTLY what this methodology has been delivering.

If you'd like to see how this entire methodology works, start by watching our presentation, "Options Trading with the Zen Ratings." It walks through the Smart Leverage framework, the TradeFinder, and how we identify these opportunities step by step.

Options Trading with the Zen Ratings >

Or, perhaps you are ready to start using Smart Leverage by becoming a Zen Options Essentials member. Click below to join: 

Zen Options Essentials >

Happy Investing,

Mijusko Sibalic

Senior Writer, Zen Options Essentials

Want to get in touch? Email us at news@wallstreetzen.com.