We are buying 200 shares of Coterra Energy at roughly $24.35. Following the trade, Jim Cramer’s Charitable Trust will own 3,300 shares of CTRA, increasing its weighting to 2.34% from 2.2%. In Monday’s edition of the Homestretch , we said we were debating adding to our position in Coterra Energy , a disciplined driller that balances oil and natural gas production based on commodity prices. The reason: Our view that the recent move higher in the price of natural gas, which is trading at its highest levels since late June, was not reflected in Coterra’s stock. As of Monday’s close, Coterra shares were only $1.33 off their 52-week low on Sept.10. Plus, we like the stock’s roughly 3.5% dividend yield and the management team’s commitment to share repurchases. We have another reason to add to our position: escalating hostilities in the Middle East . We haven’t been fans of energy stocks all year, but we always say we’ve kept Coterra in the portfolio to hedge against geopolitical risk. And that’s showing Tuesday, with Coterra up almost 2% on a down market day thanks to a 3% spike in crude oil on reports that Iran is preparing a ballistic missile attack against Israel . The bounce in oil may be sustained if tensions continue to rise, benefitting Coterra. And with Coterra being one of the smallest positions in the portfolio, we have plenty of room to buy shares Tuesday and bring down our cost basis. (Jim Cramer’s Charitable Trust is long CTRA. 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.
