XOM Reports Earnings July 29th; Global Issues Keep It Well-Positioned

XOM reports earnings on July 29th; global issues keep it well-positioned

Analyst: Stutland Volatility Group, Stutland.com (July 7, 2011,

ExxonMobil Corporation (ticker: XOM) operates petroleum and petrochemicals businesses on a worldwide basis. The company’s operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. ExxonMobil also manufactures and markets fuels, lubricants, and chemicals.

XOM, the biggest stock in the S&P 500 by market capitalization, is coming out with earnings July 29th.

At Stutland Volatility Group,, we feel that with the current global situation of civil unrest, shortages, and the growing long-term demand of oil from all economies, ExxonMobil is one of the best positioned companies in the world. They operate not only in the US, but globally, and have huge cash reserves to take advantage of any market dislocations.

Along our usual theme of investing in what people need, not what they want, without petroleum and petrochemicals that ExxonMobil produces, the world would come to a halt. We feel that it is a safe bet that ExxonMobil earnings will not disappoint, and might surprise to the upside.

With XOM currently trading around 82, we do not see ExxonMobil trading much lower than that following earnings, and we do not believe ExxonMobil will test its 26-week low of 73.67 in the coming 26 weeks. ExxonMobil’s 52-week high is 87.76 and we believe that ExxonMobil will be trading above 87 by January 1, 2012.

Stutland Volatility Group


Want to compare and analyze option strategies using this outlook? Try the NEW! TradeBuilder on CBOE.com: