A Momentum Stock Firing on All Cylinders

Dear WallStreetZen Member,

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

Shell is one of the largest integrated energy companies in the world … a global major spanning crude and gas production, refining, LNG, and a growing low-carbon arm. It's a blue-chip name that anchors a portfolio, and right now it's firing on all cylinders.

The setup is a momentum story, not a bargain-hunt. Shell has climbed roughly 38% over the past year and nearly 20% in three months, trading right against its 52-week high. The recent leg has been powered by firm crude and tight diesel, while Shell keeps returning cash through a buyback running into late October and a recent $715 million US asset sale. Strength is being rewarded, and the trend is firmly higher.

Wall Street is on board. The consensus is a Buy recommendation, and the Street's most bullish targets run well above today's price … Jefferies at $122.40 and ScotiaBank at $122.00 both imply upside north of 23% … which, as you’ll see, is more than enough to double this week’s position.

Our Zen Ratings model confirms the strength. SHEL earns an A rating, which amounts to a Strong Buy recommendation, landing in the top 2% of more than 4,600 stocks. It's the #3-ranked stock in the A-rated Oil & Gas Integrated industry.

Looking at the Component Grades behind the overall grade, SHEL ranks in the top 7% for Momentum, the top 5% for Sentiment, and the top 1% for our AI factor — a powerful price trend, strong market confidence, and quant signals pointing to more upside ahead.

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: SHEL Long Call

Given the strong fundamental case and the powerful uptrend in SHEL, 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 $9,895 to own 100 shares outright, a Deep-In-The-Money Call lets you control those same shares for about $1,452.

• The Play: $87.50 Strike Call (Expiring Mar 19, 2027)
• Delta: 0.8438 — 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: ~80% — Four-fifths 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: 4.76x — Every dollar moves 4.8x 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%), SHEL only needs to reach approximately $114.83 — a roughly 16% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A 16% move in SHEL 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 $1,452 at risk instead of $9,895. 

What To Do Next?

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

This is powerful stuff ... 

Every week, the TradeFinder takes the highest-rated Zen stocks and matches them with options that pass the Smart Leverage Test. It looks for the best balance between opportunity and risk control. 

That means you don't have to hunt for these options trades on your own. You get a targeted list you can check in minutes, not hours. 

The idea is simple and logical, and it's not what you'll hear elsewhere ... 

Good options trades don't depend on complicated multi-leg strategies. They start with a strong stock. Then comes a simple options play with plenty of intrinsic value and liquidity. That's Smart Leverage. 

And here's the best part ... 

Your risk is defined from day one, and you still have ample room for serious upside. 

In other words, we aim to put the asymmetry in your favor. 

The Zen Ratings find the stock. Smart Leverage structures the trade. 

To see how the two work together, watch our free presentation, "Options Trading with the Zen Ratings." It shows how we turn a top-rated stock into a defined-risk options position, one simple step at a time. 

Watch: Options Trading with the Zen Ratings >>> 

Already know you want the weekly setups? Join Zen Options Essentials and get each new Smart Leverage trade as soon as the TradeFinder spots it. 

Join Zen Options Essentials >>> 

Happy Investing,

Mijusko Sibalic 

Senior Writer, Zen Options Essentials  

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