XOM Options Signal Bullish Bias: Calls at $120 Dominate as RSI Hovers Near 50.8—Here’s How to Play the Rebound

• Earnings pop: Exxon just reported $7.5B in Q3 2025 profits, but paused a $10B hydrogen project due to weak demand.
• Options whisper: Call open interest spikes at $120 strikes (this Friday), while puts cluster at $111.
• Price dance: XOM’s 1.0% intraday gain hits 118.74—its highest since late October.

Here’s the takeaway: Options data and technicals hint at a short-term rebound, but structural risks linger. Let’s break it down.

Bullish Calls at $120 vs. Bearish Puts at $111: What’s the Play?

The options market is split. This Friday’s call open interest peaks at $120 (4,464 contracts), suggesting big money is eyeing a breakout above XOM’s 52-week high of 120.58. Meanwhile, puts at $111 (4,208 OI) signal a floor many traders see for downside protection. The put/call ratio of 0.685 (calls > puts) leans bullish, but don’t ignore the $111 put wall—it could trigger a bounce if XOM dips near there.

Block trades? None today. But the $120 call pileup feels like a "whale trap"—if XOM rallies past 118.74, those calls could force profit-taking, creating volatility. Conversely, a drop below 114.82 (today’s low) might trigger stop-losses near the 114.66 support level.

News Flow: Earnings vs. Project Delays—Which Wins?

Exxon’s Q3 results were stellar: $7.5B in profits and $9.4B in shareholder returns. But the hydrogen project freeze is a red flag. CEO Darren Woods called it a "demand issue," but investors are skittish about capital-intensive bets. The good news? The $30B Qatar LNG expansion and Denbury acquisition are solid long-term plays. Analysts on Simply Wall St. even call XOM "undervalued" based on Guyana’s production potential.

The mixed bag? Traders are betting on the LNG growth story (calls at $120) while hedging against near-term project risks (puts at $111). If Exxon’s Dec. 9 corporate update confirms production guidance, the stock could surge. But climate litigation risks still hang over the stock like a storm cloud.

Trade Ideas: Calls, Puts, and Precision EntriesFor options traders: Buy XOM20251128C120 (this Friday’s $120 call) if XOM breaks above 118.74. The RSI at 50.8 suggests momentum is neutral, so a breakout could spark a rally. Alternatively, a call spread using XOM20251205C118 (next Friday’s $118 call) and XOM20251205C125 could lock in gains if the stock gaps up.For stock traders: Consider entry near $114.82 (today’s low) if the 114.66 support holds. Target 118.74 first, then 120.58 (Bollinger Upper Band). A breakdown below 114.66 would signal a retreat to 112.42 (lower band)—set stops just below 114.66.Volatility on the Horizon: Balancing Bulls and Bears

XOM’s chart is a tug-of-war. The 30D MA at 115.73 and 200D MA at 110.70 suggest long-term buyers are in control, but the short-term bearish Kline pattern warns of choppy days. With the RSI near 50, we’re in a "no-man’s-land"—a breakout in either direction could accelerate. My hunch? The $120 call wall and LNG optimism give bulls the edge, but don’t ignore the $111 put cluster. This stock isn’t going straight up—it’s going to zigzag. Stay nimble.

Bottom line: XOM is at a crossroads. The options data leans bullish, but structural risks (hydrogen delays, litigation) mean this isn’t a straight sprint. Play it like a chess game: buy calls for upside, keep puts as insurance, and watch those key levels. If Exxon can hold 114.82 and break 118.74, the bulls might finally take the lead.