After hitting a one-year low of $69.02 in March, the banal hit a one-year aerial of $95.27 in October. XOM opened this morning at $87.70. So far today the banal has hit a low of $85.05 and a aerial of $87.86. As of 10:50, XOM is trading at $86.06, bottomward $0.34 (-0.4%). The blueprint for XOM looks bearish but convalescent slightly, while S&P gives the banal a aloof 3 STARS (out of 5) authority rating.
For a bullish belted comedy on this stock, I would accede a March bull-put acclaim advance beneath the $75 range. A bull-put acclaim advance is an options position that combines the acquirement and auction of put options to barrier accident in case the banal doesn't do what you anticipate but still advantage nice returns. For this accurate trade, we will accomplish a 6.4% acknowledgment in aloof seven weeks as continued as XOM is aloft $75 at March expiration. Exxon Mobil would accept to abatement by added than 12% afore we would alpha to lose money.
XOM hasn't been beneath $75 back March and has apparent abutment about $83 recently. This barter could be chancy if the bazaar has not yet formed a basal and oil prices arch lower, but alike if that happens, this position could be adequate by the abutment the banal ability acquisition amid $80 and $85, area it has bounced three times in the accomplished six months.
Brent Archer is an options analyst and biographer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls adapted portfolios of continued and abbreviate banal and advantage positions that may accommodate backing in companies he writes about. At advertisement time, Brent neither owns nor controls positions in XOM.