Options Update: Exxon Mobil volatility at 47 as oil falls below $39

Posted Jan 12th 2009 8:35AM by Paul Foster
Filed under: Exxon Mobil (XOM), Options

Exxon Mobil (NYSE: XOM) closed at $77.57. Crude oil futures are recently down 5.88% to $38.43 according to Bloomberg. The WSJ says: "XOM is poised to grow even bigger by acquiring a rival energy company or entering a partnership with an oil-rich nation in need of capital." February option implied volatility of 47 is above its 26-week average of 36, according to Track Data, suggesting larger price fluctuations.

Royal Dutch Shell (NYSE: RDS.A) closed at $53.98. The WSJ says one of the many scenarios suggested by observers is XOM buying RDS.A. RDS.A overall option implied volatility of 41 is near its 26-week average according to Track Data, suggesting non-directional fluctuations.

Amex Energy Select - XLE closed at $48.64. XLE February option implied volatility of 55 is above its 26-week average of 48, according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Tags: Amex Energy Select-XLE, AmexEnergySelect-xle, Exxon Mobil, ExxonMobil, option implied volatility, OptionImpliedVolatility, rds.a, Royal Dutch Shell, RoyalDutchShell, xle, xom