XOM Options Signal Bullish Momentum: Key Strike Levels and Trade Setups for Q4

• Exxon Mobil (XOM) surges 1.69% to $120.22, driven by strong Q3 earnings and LNG contract wins.
• Options data shows heavy call open interest at $121–$123 and bearish puts at $108–$110, with a put/call ratio of 0.64.
• CEO Darren Woods’ bullish energy outlook and $9.4B shareholder returns fuel investor optimism.

Here’s the core insight: XOM’s options activity and technicals align on a clear bullish bias, with call buying concentrated near current price levels and key resistance zones. The stock shows upside potential in the short term, but traders should watch for volatility shifts as expiration looms.

Bullish Sentiment in the Options Chain: Where the Money Is Flowing

The options market isn’t whispering—it’s shouting. For Friday’s expirations, $121 calls (OI: 3,313) and $123 calls (OI: 705) dominate, while puts at $108 (OI: 4,377) and $110 (OI: 2,374) hint at cautious downside hedging. This imbalance suggests two things:

• Big money is betting on a $121–$123 breakout, likely tied to XOM’s recent surge past its 30-day moving average ($113.80).
• Puts at $108 act as a safety net for long-term bulls, capping potential losses if the stock stumbles near its 200-day support ($108.34).

The next-week chain amplifies this pattern, with $125 calls (OI: 27,768) and $130 calls (OI: 3,346) dominating. This suggests a multi-week bullish thesis, with traders eyeing a push above the $122.30 resistance level. No block trades to note—so no whale moves to complicate the narrative.

Company News: Why XOM’s Story Is Fueling the Bull Case

XOM’s recent headlines are a goldmine for bulls. The $7.5B Q3 earnings and $9.4B shareholder returns validate its dividend aristocrat status. The LNG contract with India’s Petronet isn’t just a headline—it’s a cash flow generator in a sector where natural gas demand is surging.

CEO Darren Woods’ comments about oil and gas maintaining a long-term role are equally impactful. This isn’t just corporate speak; it signals strategic confidence in XOM’s upstream/downstream synergy. Investors are buying into the narrative: the stock’s 2.3% gain today reflects renewed faith in its ability to balance energy transition goals with profitability.

But here’s the catch: market perception matters. If the energy transition narrative shifts too fast, XOM’s bullish momentum could stall. Right now, though, the news flow and options data are in sync.

Actionable Trade Ideas: Calls, Puts, and Price Levels to Watch

For options traders, the most compelling setups are:

• Buy-to-open $121 calls (Friday expiration): With the stock trading at $120.22, these strikes offer a 0.7% buffer to breakeven. If XOM holds above its intraday low ($118.89), these calls could capitalize on a push toward $122.30 resistance.
• Buy-to-open $125 calls (next Friday expiration): These are a longer-term play, ideal for investors expecting XOM to break out of its Bollinger Band range (upper band at $118.17). A close above $125 would validate the bullish case.
• Put spread at $110 and $108: For downside protection, consider a $110 put and $108 put spread. This caps losses if the stock dips toward its 200-day support while keeping costs low.

For stock traders, the key levels are:

• Entry near $118.89 (intraday low) if support holds.
• Target zone: $122.30–$123 (30-day resistance and call-heavy strikes).
• Stop-loss below $118.89 to avoid a breakdown into the $114.31 (middle Bollinger Band) support.

Volatility on the Horizon: What to Watch for Q4

XOM’s technicals and options data paint a bullish but cautious picture. The RSI at 68.60 suggests the stock isn’t overbought yet, but the MACD histogram (0.26) shows momentum tightening. This means:

• Short-term traders should focus on the $121–$123 call-heavy zone. A close above $123 would trigger a cascade of options liquidity.
• Long-term investors can use the $110–$108 put spread as insurance while holding core positions.

The key takeaway? XOM is in a bullish sweet spot—strong fundamentals, aligned options activity, and a technical setup primed for a breakout. But don’t ignore the risks: if the stock dips below $118.89, the 200-day support at $108.34 becomes critical. For now, the data says buy the dip, not the fear.