The energy sector is the second-best performing sector in the S&P 500 in 2014, up 10.1% year to date and second to only healthcare. Those who watch unusual options activity know that all year we have seen a slew of upside call buyers in all the oil and gas names – Chevron (CVX), Conoco Phillips (COP), and Anadarko Petroleum (APC), just to name a few.
On Monday we saw yet another unusual order come through in Exxon Mobil Corporation (XOM, 99.53). A trader came in and bought 15,269 Sep 105 Calls at mid market paying $0.40. This trade has the potential to control over 1.5 million XOM shares at expiration. The calls moved all the way to $0.55 during Monday’s session, but pulled back to $0.42 after the stock was down pre-market Tuesday. This offers a potential buying opportunity to traders who like to follow unusual options activity.
The individual behind this trade requires XOM stock to be trading $105.40 at September expiration in order to break-even on his $600k bet.
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