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
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
|Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
|Dec 19 2011||79.55||Final Trade for 2011was:Sold 10 Exxon Stock Naked Puts 21JAN12 $72.50 for .65 (status: expired)||19.50||72519.50||630.50||14549.25|
|END OF 2011 TRADES|
|Jan 13 2012||83.90||Sold 10 Naked Puts 18FEB12 $80 for .77 (status: expired)||19.50||80019.50||750.50||15299.75|
|Jan 13 2012||83.90||Sold 10 Naked Puts 19MAR12 $77.50 for 1.12 (status: expired)||19.50||77519.50||1100.50||16400.25|
|Jan 20 2012||87.49||Jan Options Expiry $72.50 puts expired|
|Feb 1 2012||83.38||Sold 5 Naked Puts 21APR12 $82.50 for 1.10 (status: expired)||13.25||41263.25||536.75||16937.00|
|Feb 10 2012||84.00||Bought 300 Exxon Stock at $84.00 (status: sold at $87)||7.00||300||(25207.00)|
|Feb 17 2012||85.63||Feb Options Expiry $80 expired|
|Feb 28 2012||87.00||Sold 300 Exxon Stock at $87.00||7.00||0||26093.00||886.00||17823.00|
|Mar 16 2012||86.44||Mar Options Expiry $77.50 expired|
|Apr 11 2012||82.25||Bought 500 Exxon Stock at $82.25 (status: sold at $86)||7.00||500||(41132.00)|
|Apr 11 2012||82.25||Sold 5 Naked Puts 19MAY12 $80.00 for $1.77 (status: expired)||13.25||40013.25||871.75||18694.75|
|Apr 20 2012||85.30||Apr Options Expiry $82.50 expired|
|Apr 27 2012||86.00||Sold 500 Exxon Stock at $86.00||7.00||0||42993.00||1861.00||20555.75|
|May 23 2012||$80.50||Bought 500 Exxon Stock at $80.50 (Status: sold at $82.50)||7.00||500||(40257.00)|
|May 23 2012||$80.50||Sold 5 Naked Puts 16JUN12 for $77.50 for $1.78 (status: BTC for .32)||13.25||38763.25||876.75||21432.50|
|May 24 2012||$82.70||Bought to close 5 naked Puts 16JUN12 $77.50 for .32||13.25||(173.25)||21259.25|
|May 25 2012||82.50||Sold 500 Exxon Stock at $82.50||7.00||0||41243.00||986.00||22245.25|
|June 6||78.30||Bought 500 shares Exxon Stock for $78.30 (status: sold at $86)||7.00||500||(39157.00)|
|June 6||78.30||Sold 5 Naked Puts Exxon Stock Naked Puts 21JUL12 $77.50 for $1.38 (status: expired)||13.25||38736.75||676.75||22922.00|
|June 25||79.90||Sold 5 Naked Puts Exxon Stock Naked Puts 18AUG12 $77.50 for $1.45 (status: expired)||13.25||38736.75||711.75||23633.75|
|July 3||86.00||Sold 500 shares Exxon Stock for $86.00||7.00||0||42993.00||4256.25||27890.00|
|July 10||82.83||Sold 5 Naked Puts 18AUG12 $80.00 for $1.10 (status: expired)||13.25||40013.25||536.75||28426.75|
|July 20||85.95||July Options Expiry: $77.50 naked Puts expire|
|July 24||83.75||Sold 5 Exxon Stock Naked Puts 18AUG12 $82.50 for .90||13.25||41263.25||436.75||28863.50|
|Aug 2||85.70||Sold 5 Exxon Stock Naked Puts 22SEP12 $82.50 for .86 (status: Expired)
|Aug 9||88.20||Bought to close 5 Naked Puts Exxon Stock 18AUG12 $82.50 for .04||13.25||(33.25)||29247.25|
|Aug 17||88.40||August Options Expiry $77.50 $80 naked puts expired|
|Sep 4||86.65||Sold 5 Exxon Stock Naked Puts 20OCT12 $82.50 for .78 (status: expired)||13.25||41263.25||376.75||29624.00|
|Sep 21||91.92||Sept Options Expiry $82.50 naked puts expired|
|Oct 19||92.15||Oct Options Expiry $82.50 naked puts expired|
|Nov 15||85.49||Sold 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 21||87.23||Dec Options Expiry: $82.50 puts expired|
|Dec 28||85.25||Sell To Open (STO) 5 Naked Puts Exxon Stock 19JAN13 $82.50 put for $.88||10.00||41260.00||430.00||30697.00|