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Exxon Options Traders See Stock Flying Higher With Increased Travel

Benzinga logo Benzinga 6/1/2021 Melanie Schaffer
a large ship in a body of water © Provided by Benzinga Exxon Mobil Corporation (NYSE: XOM) closed 3.62% higher  Tuesday at $60.46 following a record number of travelers over the Memorial Day weekend.

Despite a long surge in investor interest in the electric vehicle sector, gasoline-powered transportation is still the most used mode of transit today, with airlines fully reliant on fuel. Between May 21-28, the Transportation and Security Administration said a total of 7.11 million people took to the skies — the highest daily numbers of people to pass through airport security checkpoints since the pandemic began.

Exxon options traders see continued value in traditional fuel and bet over $2.39 million Exxon’s stock is set to benefit.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

See Also: Why Goldman Sachs Is Turning Bullish On Occidental Petroleum

The Exxon Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

At 10:10 a.m., Tuesday a trader executed a call sweep, near the ask, of 200 Exxon options with a strike price of $57.50 expiring on Sept. 17. The trade represented a $104,000 bullish bet for which the trader paid $5.20 per option contract.

At 10:12 a.m., a trader executed a call sweep, near the ask, of 200 Exxon options with a strike price of $57.50 expiring on Sept. 17. The trade represented a $105,000 bullish bet for which the trader paid $5.25 per option contract.

At 10:49 a.m., a trader executed a call sweep, near the ask, of 25,000 Exxon options with a strike price of $65 expiring on July 16. The trade represented a $1.95 million bullish bet for which the trader paid 78 cents per option contract.

At 12:27 p.m., a trader executed a call sweep, near the ask, of 390 Exxon options with a strike price of $60 expiring on June 18. The trade represented a $55,380 bullish bet for which the trader paid $1.42 per option contract.

At 12:49 p.m., a trader executed a call sweep, near the ask, of 486 Exxon options with a strike price of $62.50 expiring on Sept. 17. The trade represented a $120,528 bullish bet for which the trader paid $2.48 per option contract.

At 3:28 p.m., a trader executed a call sweep, near the ask, of 401 Exxon options with a strike price of $60 expiring on June 18. The trade represented a $63,358 bullish bet for which the trader paid $1.58 per option contract.

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