Exxon Mobil (XOM) Up Over 2% Yesterday And Trading With Bullish Technicals And 5 STARs S&P Rating

Oct 28, 2009

Exxon Mobil (XOM) Up Over 2% Yesterday And Trading With Bullish Technicals And 5 STARs S&P Rating

Oct 28, 2009 (Fresh Brewed Media via COMTEX News Network) -- Exxon Mobil (NYSE: XOM) closed yesterday at $74.91. So far the stock has hit a 52-week low of $61.86 and 52-week high of $83.64. Exxon Mobil stock has been showing support around 72.70 and resistance in the 76.10 range. Technical indicators for the stock are Bullish and S&P gives XOM a very positive 5 STAR (out of 5) strong buy rating. XOM appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at an Apr '10 70 covered call (XOM DN) for a net debit in the $67.71 area. That is also the break even stock price for this trade. This covered call has a 171 day duration, provides 9.61% downside protection and a 3.38% assigned return rate for a 7.22% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the XOM Jan '11 55 Call (ODU AK) and selling the Apr '10 70 call (XOM DN) for a $13.30 debit. The trade has a 171 day life and would provide 8.82% downside protection and a 12.78% assigned return rate for a 27.00% annualized return rate (for comparison purposes only). Exxon Mobil has a current annual dividend yield of 2.28%.

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