Why Traders Expect Chevron Stock To Remain Elevated

Energy stocks have been rising, even as the rest of Wall Street struggles to recover from several weeks of losses.

On CNBC's "Options Action," Tony Zhang said there were big bets on Chevron Corporation CVX on Wednesday.

Check out energy stocks making big moves in the premarket.

There was a seller of 2,500 of the June $175 strangle at $11.94 per contract on average, Zhang mentioned. This trader sees shares of Chevron trading between $163.06 and $186.94 by June expiration, he added.

CVX Price Action: Shares of Chevron added 1.6% to close at $175.41 on Wednesday. The stock has climbed more than 47% year to date.