XOM's Call-Heavy Options Setup: Why Bulls Are Eyeing $120 as the Next Catalyst

• XOM trades at $117.80, up 0.5% intraday with volume surging to 5.2M shares
• Options data shows 56% more open interest in calls vs. puts, with heavy call buying at $120–$125 strikes
• Technical indicators (bullish Kline, rising MACD, RSI at 66) confirm short-term momentum

Here’s the bottom line: XOM’s options market is pricing in a strong upside bias, with institutional money stacking call options at key resistance levels. If the stock breaks above $120, this could trigger a short-term rally toward $125—but traders need to watch for bearish counterattacks near $114.

Bullish Pressure in the Options Market: A Playbook for $120

Let’s start with the numbers. For Friday’s expirations, call open interest spikes at $119 ($3,288 contracts) and $120 ($2,493), while puts cluster heavily at $108 ($4,374). But the real story emerges in next Friday’s chain: $120 calls ($38,835 OI) and $125 calls ($27,921) dominate, dwarfing put activity at $105 ($7,630). This isn’t just retail FOMO—the put/call ratio of 0.64 (calls > puts by 56%) shows institutional conviction in the upside.

What does this mean? Think of it like a football game: the market is stacking defenders (call buyers) at the $120 line, expecting a breakaway. If XOM holds above its 30-day support ($114.19) and closes above $120 this week, those calls could ignite a short squeeze. The danger? A pullback below $114.32 (30D support) might trigger defensive put buying—and fast.

No News, But Quiet Fundamentals Still Matter

While there are no recent headlines to parse, XOM’s underlying business remains a quiet tailwind. Energy prices are stabilizing, and the company’s dividend yield (4.5%) keeps income seekers hooked. Even without drama, this creates a floor for the stock—but don’t expect a parabolic move. The options data suggests traders are betting on technical momentum, not fundamental shifts. That means the $120–$125 range could act like a magnet if the stock approaches it, but a sudden earnings miss or oil price drop could unravel this setup overnight.

Actionable Trades: Calls for Aggressive Bulls, Puts for the Pragmatic

For options players: Buy the $120 calls (XOM240322C00120000) expiring March 22 if XOM closes above $119 today. Why? The $120 strike has massive open interest and sits just below the Bollinger Upper Band ($117.51). A breakout here could trigger gamma squeezes as market makers hedge their positions. For downside protection, the $110 puts (XOM240322P00110000) offer cheap insurance if the stock dips toward 200D support ($108.34).

Stock traders: Consider entries near $117.50 if XOM holds above $115.46 (intraday low). First target: $119.32 (30D resistance). Second: $121.81 (Bollinger Upper Band + 2.3% buffer). Exit below $114.32 to lock in gains. Avoid buying above $120 unless volume confirms strength—this is a high-velocity level.

Volatility on the Horizon: Positioning for XOM’s Next Move

The key takeaway? XOM is in a textbook short-term bullish setup, with options data and technicals aligned. But don’t mistake this for a long-term buy-and-hold signal. The $120–$125 range is a pressure valve—break it, and you’ll likely see a rush for the exits. Conversely, a failure to clear $119 this week could shift sentiment fast. Your best bet? Use next Friday’s $120 calls as a leveraged play, but keep stops tight below $114.32. In options trading, momentum is a fickle friend—and XOM’s next move could redefine the script by Thursday night.