Exxon Mobil Stock Moving Lower Amid Massive Merger

Exxon Mobil will acquire Pioneer Natural Resources for $5.95 billion

Exxon Mobil Corp (NYSE:XOM) is fossil-fuel focused, after the new merger with Pioneer Natural Resources was announced today. XOM has agreed to buy its rival for $59.5 billion, or $253 per share, in an all-stock deal, which will more than double its production volume in the Permian Basin to 1.3 million barrels of oil equivalent per day. 

Exxon Mobil stock is moving lower after the news, down 4% at $106.07 at last check, earlier trading as low as $105.48. The shares’ 320-day moving average appears to be keeping losses in check, however, as it did on Oct. 6 when the news of the merger first was reported. Today’s negative price action also has XOM breaking into negative territory in 2023, and the oil stock has now shed 13% from its Sept. 28 all-time high of $120.70.

Over in the options pits, 70,000 calls and 38,000 puts have been exchanged so far, which is three times the intraday average volume. The November 120 call is the most active contract, followed by the October 107 call, with new positions being opened at the latter. 

The call bias is nothing new. The equity’s 10-day put/call volume ratio of 1.50 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 71% of readings from the past year.

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