XOM Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 5 Expiry

• XOM trades at $116.92, up 0.86% intraday, with RSI at 45.49 and a put/call open interest ratio of 0.68 (calls dominate).
• Top OTM call open interest clusters at $118, $120, and $121 (Dec 5 expiry), while puts focus on $115 and $116.
• Bollinger Bands show price near the middle band, with 30D support at $115.86–$116.01 and 200D support at $108.27–$108.66.
• Here’s the takeaway: Options data and technicals align on a bullish bias, but short-term bearish momentum warns of volatility. Position carefully.

The Weight of Open Interest: Calls Outmuscle Puts at Key Strikes

Options market sentiment is leaning clearly bullish. For Friday’s expiry (Dec 5), call open interest peaks at $118 (OI: 4,137) and $121 (OI: 3,986), while puts max out at $115 (OI: 2,834). This imbalance suggests institutional money is pricing in a potential push above $118, with some hedging at $115. The put/call ratio of 0.68 (calls > puts) reinforces this. But don’t ignore the risk: A drop below $115.86 support could trigger a short-term selloff, especially with RSI hovering near oversold/overbought neutrality.

No Major News, But Technicals Tell the Story

With no recent headlines to sway sentiment, the market is relying on charts and options positioning. The lack of news means XOM’s direction will likely hinge on technical levels and institutional bets. The 30D moving average at $115.90 and 200D at $110.74 create a buffer zone. If price holds above $115.86, the long-term bullish trend remains intact. But a breakdown could invite short-term pain before resuming the broader uptrend.

Trade Setups: Calls for Friday, Cautious Longs for Next Week

For options traders, the most compelling plays are near-term calls at XOM20251205C118 and XOM20251205C120. These strikes have high open interest and align with Bollinger Band resistance at $120.56. If you’re bullish, buying these calls before Friday’s expiry could capitalize on a potential breakout. For a safer bet, consider a bear put spread using XOM20251205P115 and XOM20251205P112 to hedge downside risk.

For stock traders, consider entering near $116.56 (middle Bollinger Band) if support at $115.86 holds. A break above $118 could target $121, while a drop below $115.86 may retest $112.56 (lower band). For next Friday’s longer-dated plays, XOM20251212C120 (OI: 961) offers a balance of leverage and time decay protection.

Volatility on the Horizon: Position for XOM’s December Moves

XOM sits at a crossroads. The options market is pricing in a bullish bias, but technical indicators like MACD and RSI hint at near-term jitters. Your best bet? Use Friday’s expiry to lock in directional bets with defined risks. If the stock holds its support, the path to $121 looks clearer. But if it falters, don’t chase—let the 200D line at $108.27 be your floor. December could be eventful, and the options chain is already whispering where the action might go.