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Thread: 9.9% ROI in 4 weeks on Exxon Mobil

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    God/dess britneyireland's Avatar
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    Default 9.9% ROI in 4 weeks on Exxon Mobil

    I like to trade oil stocks. Psychologically it negates the price I have to pay at the pump.

    The Trade
    March Bear Call Spread
    Sell the March 80 call for .65
    Buy the March 85 Call for .20
    Net Credit of .45

    So for every $465 you risk, you get $45 maximum return. That is a 9.9% ROI

    The Trade: To sell the March $80.00 Calls and then buy the March $85.00 Calls. As long as the stock closes below $80.00 on the March expirations day, both options will expire for a profit. If the stock climbs above resistance and then looks like it will close above $80.00 we will need to buy to close the March $80.00 Calls and sell to close the March $85.00 Calls.

    Technicals: The stock has a 52-week high of $94.61 in during the month of May and a 52-week low of $55.91 set in October. The stock’s overall trend is sideways and prices have recently slipped below the support level of the 30-dma and trendline. The stock trades in the oil & gas industry, which is trading near is mid range and institutional interest is falling off. Both the lower indicators are revealing sell signals.



    The Company
    XOM – Exxon Mobil Corp.
    Exxon Mobil Corporation engages in the exploration, production, transportation, and sale of crude oil and natural gas. It also engages in the manufacture of petroleum products, and transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. Exxon Mobil also has interests in electric power generation facilities. As of December 31, 2007, it had 7744 millions of barrels of liquid proved reserves, and 32,610 billions of cubic feet of proved reserves of natural gas. Exxon Mobil also operated 16,797 gross wells. The company operates in the United States, Canada, Europe, Africa, Asia-Pacific, the Middle East, Russia/Caspian region, and South America. Exxon Mobil was founded in 1870. The company was formerly known as Exxon Corporation and changed its name to Exxon Mobil Corporation in 1999. Exxon Mobil is based in Irving, Texas.
    Rebecca Avalon







  2. #2
    God/dess britneyireland's Avatar
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    Default Re: 9.9% ROI in 4 weeks on Exxon Mobil

    Update

    With today's drop, and two weeks worth of time decay since I first posted this...we can buy back this spread for .12

    We have already achieved 7.1% ROI on this trade. Do we want to hold it for another 3 weeks to squeeze out another measly 2% or $12 per contract?

    My thought is: NO! We now go look for another trade!

    I closed this trade for a 7.1% ROI in TWO weeks.
    Rebecca Avalon







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