Exxon Stock represents Exxon Mobil Corporation, the largest oil and gas company in the world and aside from Apple Inc, the largest corporation in the world. Exxon stock symbol is XOM. XOM Stock has been in my portfolio for years. The strategy has always been put selling to earn income, then when assigned shares, covered calls to pick up the dividend and eventually exercise out of the shares. I then repeat the process. There is a lot to like about Exxon Stock. Earnings per shares this year are at $8.28 per share. Book value is $32.61 and cash flow is $11.80. The price to earnings is 9.8 times at the start of 2012. Gross margin is 26.51% and operating margin is 14.47%. The annual dividend is $2.28 for a yield of 2.80%. Payout ratio is a very healthy 22.7 times earnings and debt to capital is an excellent 8.71% with a current ratio of less than 1 times earnings. This is a financially healthy corporation. Market cap is $381 billion and revenue is $496.5 billion.

Earnings per share growth of Exxon Stock is improving and is above the industry average. The most recent earnings per share of $8.28, was an increase of 17.69% over 2011. However many analysts feel that XOM Stock PE is too high when compared with the stock of other oil and gas integrated corporations. Competitors trade closer to 9 times earnings. Personally I am not concerned. Exxon Mobil debt is almost non-existent. This is a very well run company which has one of the highest ROE of any company in the oil and gas integrated market.

While many investors have a low growth outlook for XOM Stock and feel the dividend it too low, I am more interested in the option premiums that I can earn through put and call selling. There are many times when I have moved between stock call or put with Exxon Stock owning all three at various times.

Exxon Mobil Corp has lost some market share and is growing their revenues slower than the overall industry average but they have bought up natural gas reserves and producers and when natural gas prices rebound they could easily see their stock double in value. To learn more about Exxon Stock you can select this Exxon Stock link to visit their investor relations page.

Exxon Stock Strategy For 2012

Exxon Stock 5 Year Stock History Chart

Exxon Stock 5 Year Stock History Chart

The above 5 year XOM Stock chart shows the stock has a lot of strength at the $70 level. Whenever this stock falls below $70 it is a great buy.

The investment strategy remains the same as the last 3 years, put selling. Through using support and resistance charting I sell puts at points of where I believe there is support in Exxon Stock when the stock pulls back near those points. If assigned shares I plan to sell covered calls until exercised out of shares and then repeat the process. As well while Exxon Stock stays within a range I will be buying small lots of shares at the low end of that range to sell on the moves higher.

Review Exxon Stock Trades For 2011
Review Exxon Stock Trades For 2010

Exxon Stock Trades For 2012

Current Exxon Stock Status – Year 3

Capital Currently In Use: $41260.00
Income Earned in 2012: $16147.75
Total Income Earned Since Trade Started In 2010: $30697.00
Total Of My Own Capital Required If All Naked Puts Were Assigned: $10563.00
Number Of Shares If All Naked Puts Were Assigned: 500
Share Price Valuation (Total Capital Required/Number of shares): $21.13

DateStock At
Time Of
Action Taken (All Figures Are US Dollars)
In Use
Dec 19 201179.55Final Trade for 2011was:Sold 10 Exxon Stock Naked Puts 21JAN12 $72.50 for .65 (status: expired)19.5072519.50630.5014549.25

Jan 13 201283.90Sold 10 Naked Puts 18FEB12 $80 for .77 (status: expired)19.5080019.50750.5015299.75
Jan 13 201283.90Sold 10 Naked Puts 19MAR12 $77.50 for 1.12 (status: expired)19.5077519.501100.5016400.25
Jan 20 201287.49Jan Options Expiry $72.50 puts expired
Feb 1 201283.38Sold 5 Naked Puts 21APR12 $82.50 for 1.10 (status: expired)13.2541263.25536.7516937.00
Feb 10 201284.00Bought 300 Exxon Stock at $84.00 (status: sold at $87)7.00300(25207.00)
Feb 17 201285.63Feb Options Expiry $80 expired
Feb 28 201287.00Sold 300 Exxon Stock at $87.007.00026093.00886.0017823.00
Mar 16 201286.44Mar Options Expiry $77.50 expired
Apr 11 201282.25Bought 500 Exxon Stock at $82.25  (status: sold at $86)7.00500(41132.00)
Apr 11 201282.25Sold 5 Naked Puts 19MAY12 $80.00 for $1.77 (status: expired)13.2540013.25871.7518694.75
Apr 20 201285.30Apr Options Expiry $82.50 expired
Apr 27 201286.00Sold 500 Exxon Stock at $86.007.00042993.001861.0020555.75
May 23 2012$80.50Bought 500 Exxon Stock at $80.50 (Status: sold at $82.50)7.00500(40257.00)
May 23 2012$80.50Sold 5 Naked Puts 16JUN12 for $77.50 for $1.78 (status: BTC for .32)13.2538763.25876.7521432.50
May 24 2012$82.70Bought to close 5 naked Puts 16JUN12 $77.50 for .3213.25(173.25)21259.25
May 25 201282.50Sold 500 Exxon Stock at $82.507.00041243.00986.0022245.25
June 678.30Bought 500 shares Exxon Stock for $78.30 (status: sold at $86)7.00500(39157.00)
June 678.30Sold 5 Naked Puts Exxon Stock Naked Puts 21JUL12 $77.50 for $1.38 (status: expired)13.2538736.75676.7522922.00
June 2579.90Sold 5 Naked Puts Exxon Stock Naked Puts 18AUG12 $77.50 for $1.45 (status: expired)13.2538736.75711.7523633.75
July 386.00Sold 500 shares Exxon Stock for $86.007.00042993.004256.2527890.00
July 1082.83Sold 5 Naked Puts 18AUG12 $80.00 for $1.10 (status: expired)13.2540013.25536.7528426.75
July 2085.95July Options Expiry: $77.50 naked Puts expire
July 2483.75Sold 5 Exxon Stock Naked Puts 18AUG12 $82.50 for .9013.2541263.25436.7528863.50
Aug 285.70Sold 5 Exxon Stock Naked Puts 22SEP12 $82.50 for .86 (status: Expired)
Aug 988.20Bought to close 5 Naked Puts Exxon Stock 18AUG12 $82.50 for .0413.25(33.25)29247.25
Aug 1788.40August Options Expiry $77.50 $80 naked puts expired
Sep 486.65Sold 5 Exxon Stock Naked Puts 20OCT12 $82.50 for .78 (status: expired)13.2541263.25376.7529624.00
Sep 2191.92Sept Options Expiry $82.50 naked puts expired
Oct 1992.15Oct Options Expiry $82.50 naked puts expired
Nov 1585.49Sold 8 Exxon Stock Naked Puts 22DEC12 $82.50 for .82 cents (note new commission $1.00 per contract plus $5.00 per trade) (Status: Expired)
Dec 2187.23Dec Options Expiry: $82.50 puts expired
Dec 2885.25Sell To Open (STO) 5 Naked Puts Exxon Stock 19JAN13 $82.50 put for $.8810.0041260.00430.0030697.00