We’re selling 100 shares of Devon Energy (DVN) at roughly $68.48 each. Following Tuesday trade, Jim’s Charitable Trust will own 500 shares of DVN, decreasing its weighting in the portfolio to 1.24% from 1.48%. We’re making our second small trim — this time in Devon Energy — into Tuesday’s rally as we slowly begin the process of replenishing our cash position, which we aggressively put to work into recently lower stock prices and a market that reached its most oversold level since the March 2020 pandemic crash . Earlier Tuesday, we sold 20 shares of Humana (HUM), locking in a solid gain of about 8% in the process. Devon Energy, and many other oil-related stocks, have had an outsized move over the past two days on the news that OPEC+ may look to cut production by more than 1 million barrels per day. This would be the largest supply cut since the pandemic began. Devon jumped nearly 5% on Tuesday. The oil cartel and its international allies, including Russia, are scheduled to meet Wednesday to discuss the topic. Given the big upward swing that crude has had over the past two days, we are trimming one of our oil stocks to be safe against a potential “buy the rumor, sell the news” type of reaction Wednesday or a possible smaller than anticipated output reduction. Shares of Devon Energy rose nearly 14% over the past two days and almost 24% since hitting a recent low on Sept. 26. We do not want to give this big gain back. This sale will lock in a fantastic gain of about 50% on stock purchased in January 2022. (Jim Cramer’s Charitable Trust is long DVN and HUM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Pipes carry water, steam and oil at Devon Energy Corp.’s 35,000 barrel per day Jackfish Projects plant, where Steam Assisted Gravity Drainage (SAGD) is used to extract bitumen from oil sands, near Conklin, Alberta, Canada.
Jimmy Jeong | Bloomberg | Getty Images
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