• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (XOM) November 18, 2022 - BUY

Trade Alert

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.


Alert

 

Trade Alert - (XOM) - BUY


Buy the ExxonMobil (XOM) December 2022 $120-$125 in-the-money vertical bear put spread at $4.30 or best

Opening Trade

11-18-2022

expiration date: December 16, 2022

Portfolio weighting: 10%

Number of Contracts = 25 contracts

Oil is breaking down here, losing the $80 handle this morning. This is despite the fact that we are entering peak demand.

This could be happening because Russia’s continuing retreat from Ukraine could lead to an eventual tsunami of Russian oil hitting the market in 2023. We also could finally be seeing EV make a dent in oil demand.

EV productions will top 1.5 million this year, and 20 million in 2032. Some 50% of US oil production now goes to automobiles and that market will eventually disappear.

And while oil prices have been flat-lining for months, the shares of ExxonMobil have been on an absolute tear, up some 38% since the September low.

Another nail in the coffin for the oil industry was the disastrous outcome of the midterms elections. No red wave means no congressional air cover, which is desperately needed during a period of accelerating climate change.

In addition, I know you all of substantial longs out there that we have been Hoovering up since the October low. This position would make a nice hedge against those longs, at least for a month.

Therefore, I am buying the ExxonMobil (XOM) December 2022 $120-$125 in-the-money vertical bear put spread at $4.30 or best.

Don’t pay more than $4.60 or you will be chasing.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.

If you don’t do options, stand aside. This is a short-term options play only.

This is a bet that the ExxonMobile (XOM) will not trade above $120.00 by the December 16 options expiration day in 20 trading days.

Here are the specific trades you need to execute this position:

Buy 25 December 2022 (XOM) $125 puts at………...…$14.00

Sell short 25 December 2022 (XOM) $120 puts at…….$9.70

Net Cost:………………………….………......................………$4.30

Potential Profit: $5.00 - $4.30 = $0.70

(25 X 100 X $0.70) = $1,750, or 16.28% in 20 trading days.

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-11-18 10:41:482022-11-18 10:45:27Trade Alert - (XOM) November 18, 2022 - BUY

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: November 18, 2022 Link to: November 18, 2022 November 18, 2022 Link to: Trade Alert - (SPY) November 18, 2022 - BUY Link to: Trade Alert - (SPY) November 18, 2022 - BUY Trade Alert - (SPY) November 18, 2022 - BUY
Scroll to top