Trade Of The Week: Unusual Options Activity In Exxon Mobil

Options Portfolio Manager – Investors Alley • Dec 10, 2019 at 11:13 AM EST

Just recently, there has been some unusual options activity in Exxon Mobil (XOM). The oil and gas giant has seen its stock price go higher on news of a surprise cut in oil production from Saudi Arabia.

Just recently, there has been some unusual options activity in Exxon Mobil (XOM). The oil and gas giant has seen its stock price go higher on news of a surprise cut in oil production from Saudi Arabia. A cut in production is almost always bullish for oil companies like XOM.

In response, a trader placed a large put spread (or rolled up a lot of puts to a higher strike) which makes money if the share price drops. This is likely a hedge against a large position in the stock. After a big up day, someone may be looking to protect their profits in case the share price goes back down in the next couple weeks.

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