4 Trade Ideas for Exxon Mobil: Bonus Idea

• Posted by Greg Harmon
• on August 14th, 2023

Here is your Bonus Idea with links to the full Top Ten:

Exxon Mobil, $XOM, comes into the week breaking to a new 3½ month high. This was also a move back over the 200 day SMA. Price is following the open Bollinger Bands® higher. The RSI is rising in the bullish zone with the MACD positive and moving higher. There is resistance at 113.75 and 114.50 then 117.25 and 119.50 with the all-time intraday high at 119.92. Support lower comes at 110.50 and 109 then 107.74. Short interest is low under 1%. The stock pays a dividend with an annual yield of 3.25% and will start to trade ex-dividend on August 15th. The company is expected to report earnings next on October 26th.

The August options chain shows open interest spread from 112 to 100 on the put side and biggest at 108 then 110 and 120 on the call side. The September chain has biggest open interest at the 100 put and at the 110 and 115 call strikes. The October chain has open interest spread from 105 to 85, biggest at 95 and 90, on the put side. On the call side it is spread from 105 to 155, biggest at 110. Finally, the January chain is the first to cover the next earnings report. It has big open interest from 110 to 92.50 on the put side and from 100 to 130 on the call side.

Exxon Mobil, Ticker: $XOM

Trade Idea 1: Buy the stock on a move over 112 with a stop at 109.

Trade Idea 2: Buy the stock on a move over 112 and add a September 110/100 Put Spread ($2.03) while selling the October 120 Call ($1.50).

Trade Idea 3: Buy the October 115/September 120 Call Diagonal ($1.65) while selling the September 105 Put ($0.95).

Trade Idea 4: Buy the January 100/115/130 Call Spread Risk Reversal ($1.76).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the August options expiration, saw equity markets continue to show short term weakness fitting with the seasonal pattern.

Elsewhere look for Gold to continue its pullback while Crude Oil in on the verge of a breakout higher with strong momentum. The US Dollar Index continues a short term move to the upside while US Treasuries pullback. The Shanghai Composite looks to continue the pullback in consolidation while Emerging Markets consolidate.

The Volatility Index looks to remain low and better to the downside making the path easier for equity markets to the upside. The charts of SPY and QQQ look strong on the longer timeframe with the IWM in a broad consolidation. On the daily timeframe the IWM, the QQQ and the SPY all look messier with a bias lower short term. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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