In addition to tonight's new play, I am updating my radar screen.
Here is a list of stocks on my radar screen. These have potential to be LEAPS trades down the road if the right entry point presents itself. In no particular order:
RIG, URI, PPC, AA, CSX ,MYL, LM, WCN, USB, XYL, BITA, CRM, SANM, THC, MRO, PDS, PXD, CLR, CXO, XEC, OXY, NBL, EPD, SAVE, WLP, SIAL, FLR, MNST, FLS, NOC, LMT, WLP, CE, FSLR, SPW,
- New Trades -
Exxon Mobil Corp. - XOM - close: 103.83
XOM is a watch list candidate that met our entry point requirements with Friday's rally. The plan was to wait for shares to close above $103.75 and then buy calls the next day. Shares closed at $103.83 on Friday. That means our entry point will be Monday morning.
I do not see any changes from last week's new watch list candidate description below.
XOM is the largest publicly traded oil company on the planet. They're actually one of the largest companies on the planet with more than 75,000 employees and a market cap of more than $440 billion.
This company is so big they've got their hands in just about every region of the world, anywhere from U.S. shale region, Canadian oil sands, West Africa, Kazakstan, everywhere. Of course being every does pose a risk to geopolitical tensions. XOM has some significant deals with Russia. If the situation between Russia and the West were to worsen it could spell trouble for XOM's investments in Russia. The same holds true in Iraq. Right now violence in Iraq is driving oil prices higher but it poses a risk for XOM's investments in the country. Currently most of the fighting is in the northern half of Iraq and most of the oil fields and infrastructure is in the south. There is no guarantee the Iraq fighting couldn't move south.
Technically shares look great. The stock hit all-time highs in early May and spent the rest of the month consolidating gains. Now shares are bouncing from technical support at its rising 50-dma. XOM looks poised to breakout higher soon. Not only does XOM have a strong stock buyback program but they're currently yielding 2.7%. That's more than a U.S. ten-year bond's 2.6% yield.
Tonight I am suggesting we wait for XOM to close above $103.75 and then buy calls the next morning with a stop loss at $99.25. Our long-term target is the $125-130 zone. The point & figure chart is bullish and forecasting at $133 target.
Breakout trigger: Wait for a close above $103.75
then buy calls the next day with a stop at $99.25.
BUY the 2015 Jan $105 call (XOM150117C105) current ask $3.45
- or -
BUY the 2016 Jan $110 call (XOM160115c110) current ask $4.35
Option Format: symbol-year-month-day-call-strike
Chart of XOM:
Originally listed on the Watch List: 06/15/14