Options Trading News

April 17, 2013  Wed 4:47 AM CT

Exxon Mobil is near its lowest levels of the year, but one trader is betting that the energy giant will rally by autumn.

optionMONSTER's Heat Seeker system detected the purchase of 4,400 October 92.50 in one print for $1.05. This is clearly a new position because it was above the open interest at that strike before the session began.

XOM was up fractionally yesterday to $86.61, a day after dropping below its 200-day moving average to its lowest close of 2013. The stock saw other technical damage to its chart as its 10-day moving average fell below its 50-day line.

Yesterday's long calls, which lock in the price where the stock can be bought, are looking for XOM to gain more than 8 percent by Oct. 19. These options could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if the shares remain below the $92.50 strike price. (See our Education section)

Total option volume in Exxon Mobil surpassed 67,000 contracts yesterday, more than double its daily average in the last month. The company is scheduled to release first-quarter results on the morning of April 25.

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