XOM Options Signal Bullish Momentum: Calls at $120–$121 Dominate as Puts at $115 Hint at Risk Management Plays

• Price action: XOM trades at $115.76, down 0.67% from its intraday high of $117.00.
• Options heat: Calls at $121 and $120 (this Friday’s expiry) lead open interest, while puts at $115 show defensive positioning.
• News catalysts: Partnerships with Aramco/Samref and NextEra Energy, plus a BNP Paribas upgrade, fuel strategic optimism.

Here’s the takeaway: XOM’s options market is betting on a near-term rebound above $117, but traders are hedging downside risks near $115. The stock’s technicals and news flow align with a bullish bias—but with caution below key support.Bullish Calls at $120–$121 Signal Institutional Conviction

The options chain tells a clear story: 4,481 open calls at the $121 strike (expiring Dec 12) and 43,826 for the same strike next week (Dec 19) show heavy institutional positioning for a rally. This isn’t just retail noise—those OI numbers suggest big players are prepping for a push above $117.00, the intraday high.

But here’s the twist: the put/call ratio for open interest is 0.666, meaning calls dominate. That’s bullish, but the top puts at $115 (1,962 OI) hint at a floor. Think of it like a seesaw—bulls are pushing hard, but bears aren’t entirely out of the game. If XOM breaks $117.00, the $120–$121 calls could ignite. But if it dips below $115.04, those puts might cap the damage.

News Flow: Strategic Upgrades and Energy Sector Re-Rating

The recent partnership with Aramco to upgrade the Yanbu refinery isn’t just a headline—it’s a $10B+ project in the making. That kind of capital deployment usually lifts E&P valuations. Then there’s the NextEra gigawatt project, which ties XOM’s carbon capture tech to the exploding data center energy demand. These aren’t abstract bets; they’re real-world revenue streams.

BNP Paribas’s upgrade to “Neutral” (from “Underperform”) also matters. Analyst ratings act like social proof—when a major bank revises its stance, it often triggers a short-covering rally. Combine that with the Dec 9 webcast, and you’ve got a catalyst-driven setup.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders:

• Bullish play: Buy XOM20251219C120 (Dec 19 $120 call). With 43,826 OI, this strike is a magnet for liquidity. Target entry if XOM closes above $117.00 today.
• Bearish hedge: Buy XOM20251212P115 (Dec 12 $115 put) if the stock tests support at $115.88 (30D support level).

For stock traders:

• Entry near $115.88 if the price holds above that level. Target $117.21 (middle Bollinger band) as a first profit zone.
• Stop-loss below $114.32 (lower Bollinger band) to protect against a breakdown.

Volatility on the Horizon: Position for the Webcast Catalyst

The Dec 9 webcast is a wildcard. Management could outline capital allocation shifts or dividend updates—both of which drive XOM’s beta. With RSI at 40.6 and MACD trending lower, the stock is in a “rebound setup” mode. If the webcast reinforces the $120+ thesis, the 43,826 OI at $120 calls could turn into a liquidity vacuum.

But don’t ignore the puts. The $115 strike has 1,962 OI for this Friday—traders are pricing in a potential pullback. Balance your exposure: go long the calls, but keep a short-term put as insurance.

Final Take: XOM’s options and news flow paint a bullish picture, but the technicals aren’t screaming “buy the dip.” This is a measured trade—position for a $117.00 breakout, but keep a tight stop below $114.32. The energy sector’s re-rating and XOM’s project pipeline make this a high-conviction setup for the next 1–2 weeks.