XOM Options Signal Bullish Momentum: Key Strikes and Trade Setups for Upcoming Volatility

• Exxon Mobil (XOM) surges 1.3% to $119.67, trading above 30D, 100D, and 200D moving averages.
• Options data shows heavy call open interest at $120–$125 strikes, with a put/call ratio of 0.66 signaling bullish bias.
• Recent news: $7.5B Q3 earnings and Brazil’s Bacalhau project unlock 1B+ barrels of oil equivalent.

Here’s the core insight: XOM’s options market is painting a clear picture of optimism. Call open interest dominates at key strikes, technicals align with a bullish breakout, and fundamentals are firing on all cylinders. This isn’t just noise—it’s a setup for upside momentum. Let’s break it down.

What the Options Chain Reveals About Market Sentiment

The options data tells a story of cautious optimism with a heavy dose of bullish positioning. For Friday’s expirations, the $120 call (OI: 4,481) and $121 call (OI: 3,816) are the most watched, while next Friday’s $120 call (OI: 37,119) and $125 call (OI: 28,360) show even stronger conviction. These strikes act like invisible magnets—traders are betting Exxon will test or surpass $120 in the near term.

On the put side, the $118 put (OI: 5,630) and $117 put (OI: 5,396) suggest some hedging activity, but the put/call ratio of 0.66 means calls still dominate. Think of it like a tug-of-war: the bullish team is holding the rope firmly. The lack of block trades adds another layer of clarity—no major institutional players are secretly shorting or hedging against a downturn right now.

How Recent News Fuels the Bull Case

Exxon’s Q3 2025 earnings ($7.5B) and Brazil’s Bacalhau project (1B+ barrels unlocked) aren’t just headlines—they’re catalysts. The $6.3B in free cash flow and $9.4B in shareholder distributions validate the company’s ability to reward investors, while the Brazil project adds long-term production capacity.

This news matters because it answers the question: Why are options buyers so bullish? Strong fundamentals reduce downside risk and justify aggressive call buying. Investors aren’t just betting on a short-term pop—they’re pricing in confidence that XOM can sustain its upward trajectory through 2026.

Actionable Trade Ideas for XOM

For options traders, the $120 call (next Friday’s expiration) is a prime candidate. With 37,119 contracts open, it’s the most liquid and directional bet. Here’s how to play it:

• Buy the $120 Call (Next Friday): Entry ~$1.80–$2.00. Target: $125 (5%+ move). Stop-loss: Below $118.50.
• Call Spread for Lower Risk: Buy $120 call, sell $125 call. Cost ~$1.20. Profit if XOM hits $125.

For stock traders, consider entering near current levels with a tight stop. Key support at $114.11–$114.30 (30D range) and resistance at $118.26–$118.66 (200D range). If XOM holds above $118.28 (intraday low), target $122–$125. A breakdown below $114.11 would signal caution.

Volatility on the Horizon

The next two weeks are critical. If XOM breaks above $120, the $125 level becomes the next target—backed by both technicals and options positioning. But don’t ignore the risks: a drop below $115 would trigger panic, especially with puts at $110–$114 gaining traction.

For those wanting to hedge, a put spread at $110–$115 could cap losses without overpaying. The key takeaway? This is a stock with momentum, fundamentals, and options data all pointing higher. But as always, keep your stops tight and your eyes on the broader energy sector trends.