Exxon Mobil is a big company that finds, makes, and sells oil and gas. They also make other things from oil. Some people are buying and selling options of this company's stock in a way that is different from normal. This article tries to show why they are doing that. Read from source...
- The article lacks a clear thesis statement that summarizes the main point or argument about the unusual options activity for Exxon Mobil on March 13. Instead, it presents a series of facts and figures without connecting them to any specific claim or analysis. This makes the article confusing and hard to follow for the readers who are looking for insights into the market dynamics and the company's performance.
- The article relies heavily on quantitative data from Benzinga Research, such as volume, open interest, whale activity, trade type, strike price, total trade price, etc. However, it does not provide any context or interpretation of what these numbers mean for the investors and traders who are interested in Exxon Mobil's options. For example, how do these data points indicate a bullish or bearish sentiment? How do they compare to previous periods or historical trends? What factors could influence the changes in the liquidity and interest for Exxon Mobil's options? These questions are left unanswered by the article, which makes it less informative and useful.
- The article fails to acknowledge any potential conflicts of interest or biases that may affect the source of data or the analysis from Benzinga Research. For instance, does Benzinga have any financial stake in Exxon Mobil's options? Does Benzinga receive any compensation or commission from the brokers or platforms that facilitate the trades? Does Benzinga have any affiliation with any of the whale traders or institutional investors that are involved in the unusual options activity for Exxon Mobil on March 13? These are important questions to address when evaluating the credibility and reliability of the data and analysis from Benzinga Research, but they are ignored by the article.
- The article shows signs of emotional behavior and irrational arguments in some of its statements. For example, it uses phrases like "significant options trades detected" without explaining what makes them significant or why they matter for the readers. It also uses words like "unusual" and "whale activity" without defining them or providing any evidence or examples of how they are unusual or related to the whales. These statements seem to be intended to create a sense of curiosity and urgency among the readers, but they do not support any logical or factual argument about the options activity for Exxon Mobil on March 13.
- The article has poor grammar, punctuation, and spelling throughout its text. It also uses jargon and acronyms that may confuse or alienate some of the readers who are not familiar with the stock market terminology or concepts. For example, it uses terms like "calls" and "puts" without explaining what they mean or how they
Based on my analysis, I would recommend buying a strangle strategy for Exxon Mobil with a strike price of $105.0 for both calls and puts. This is because the volume and open interest for this strike price have increased significantly in the last 30 days, indicating high liquidity and whale activity. The strangle strategy involves buying both a call option and a put option at the same strike price, with the expectation that the stock will move at least $10.0 either way from the current price of $104.84 (as of March 13). The potential profit for this strategy is unlimited, as the stock can go up or down as much as possible, while the maximum loss is limited to the initial cost of both options, which is $9.0 per contract. This makes it a suitable strategy for investors who are bullish or bearish on the stock, or those who expect high volatility in the near future. The risk-reward ratio is favorable, as the breakeven points for this strangle are $114.8 and $95.2, which are within the range of possible outcomes for the stock in the next few weeks or months.