XOM Exxon Mobil (XOM) options offer exposure to integrated energy with strong dividend yield, oil price correlation, and moderate volatility characteristics.

XOM options are driven by crude oil prices, OPEC decisions, and energy policy. The stock's dividend yield enhances covered call returns.

XOM Options Characteristics

Avg Daily Volume

250K+ contracts

Typical Spread

$0.02-0.05

Typical IV Rank

20-40%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$95-125

Correlation

High correlation with crude oil (USO) and XLE

Best Strategies for XOM

Covered Calls

Income on top of 3%+ dividend yield

Collar Strategy

Protect energy gains while earning premium

Cash-Secured Puts

Accumulate near support during oil dips

Bull Put Spreads

Bullish energy thesis with defined risk

Calendar Spreads

Trade around OPEC meetings and EIA reports

Energy + Income

XOM's combination of oil price exposure and dividend yield makes it popular for income-focused options traders. Covered calls on XOM generate premium on top of the ~3% dividend.

XOM Options FAQ

How does oil price affect XOM options?

XOM has ~0.6-0.8 correlation with crude oil prices. Rising oil boosts XOM; falling oil pressures it. Options IV spikes around OPEC meetings, EIA inventory reports, and geopolitical tensions affecting supply.

Is XOM good for covered calls?

Excellent. XOM pays a ~3% dividend plus you collect call premium. Total yield can reach 8-12% annually with conservative strike selection. The Wheel strategy works particularly well on XOM.