Calls Hot As Rising Oil Prices Lift Exxon Mobil Stock

The oil giant is also exploring a deal with Qatar

Managing Editor
Apr 10, 2018 at 2:43 PM
facebook X logo linkedin

Exxon Mobil (NYSE:XOM) is up 3.4% to trade at $77.44, as oil prices climb above the $65 level. Exxon Mobil also made headlines after The Wall Street Journal reported the company was in talks with Qatar (subscription required) over a potential partnership. Amid the double dose of news, calls have become quite popular today in the options pits.

Diving in, roughly 65,000 XOM calls have changed hands today, two times the intraday norm and volume pacing for the 99th annual percentile. The April 77.50 call is the most popular, and there is a mixture of buy-to-open and sell-to-open activity at this strike, according to Trade-Alert. Those buying the calls expect an extended rally from the oil stock, while those writing the calls see the $77.50 level as a short-term ceiling. It's worth noting that more than 20,700 positions were open at this strike coming into today.

Looking back a few weeks, calls continues to reign. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows XOM with a 10-day call/put volume ratio of 2.74, which indicates calls have outnumbered puts by a nearly three-to-one ratio. 

Earlier today, the stock was also added to BofA-Merrill Lynch's U.S. 1 list, with the analyst in coverage believing the oil stock has "upstream portfolio leverage." Despite the bullish brokerage note today, most analysts remain skeptical. Of the 15 brokerages covering the security, 11 rate it a "hold" or "strong sell."

The flurry of good news today has Exxon Mobil stock above its 50-day moving average for the first time since Feb. 2. The equity gapped lower after its analyst day in early February, culminating in a two-year low of $72.15 on April 2.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI