XOM has seen a cup & handle pullback to support
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Energy giant Exxon Mobil Corp (NYSE:XOM) has seen a cup and handle pattern pullback to the 50-day moving average, into 2023 zone highs and is currently pushing back above its September peak. The 115 call level will be cut by 50% in the May standard expiration series, potentially releasing price action to move higher.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security’s 50-day put/call volume ratio comes in the 95th annual percentile, leaving ample room for bears to unwind and push shares higher. Analysts have ample room for upgrades too, with seven in coverage sporting a tepid “hold” recommendation.
Options are looking affordable, too, per the stock’s Schaeffer’s Volatility Index (SVI) of 15%, which ranks in the lowest percentile in the last 12 months. Our recommended call option has a leverage ratio of 14.04, and will double on a 6.83 rise in the underlying security.