tradeMONSTER: Trade free for 90 days

Options Trading News

January 31, 2013  Thu 9:55 AM CT

XOM: SEE CHART GET CHAIN FIND STRATEGIES
The biggest option trade of the day so far is an enormous put spread in Exxon Mobil.

More than 76,000 XOM options have traded hands already this morning, compared to a daily average of 28,000 over the last month. A single put spread dominates the activity.

optionMONSTER's Depth Charge system shows that a trader bought 30,000 July 87.50 puts for $2.79 and, at the same time, sold 30,000 July 77.50 puts for the bid price of $0.90. The volume was multiples of the previous open interest at each strike, clearly indicating that these are new positions.

This vertical spread costs the trader $1.89, which is the amount at risk if XOM remains above $87.50 through that expiration. The potential gain of $9.11 would be realized if shares are below the lower $77.50 strike price at that time. (See our Education section)

Shares of the energy giant haven't been below $77.50 since the June low, and even then they did not close below that price. XOM is up fractionally today at $90.73 after testing resistance at $92 for the last week.
Share this article with your friends


Related Stories

XOM

Cramer: Goldilocks vs. the 3 bears

December 17, 2014

Let's put them in perspective with Goldilocks who, of course, triumphs in the fairy tale but has gotten eaten a lot lately if only to snap back to life the next day.

XOM

Cramer: Oil debacle in perspective

December 12, 2014

Consider Exxon as a potentially gigantic repo man that cobbles together whatever properties it wants and creates a domestic powerhouse of unbelievable proportions.

XOM

Cramer: Potential oil names to like

December 4, 2014

Major oils like Exxon don't just suddenly decide to buy beaten-down names. A stretched company that goes belly-up puts pressure on all of these independents.

XOM

Bulls bet on rebound in Exxon Mobil

December 1, 2014

The entire energy sector has been under heavy selling pressure since OPEC decided last Thursday to leave oil production unchanged, but traders are looking for a rebound.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER