Energy
XOM
Exxon Mobil Corporation
Generate income from Exxon Mobil (XOM) with covered calls and cash secured puts. Strong dividend with energy sector premium.
Monthly Premium1.2-2.0%
Annualized Return14-24%
Stock Price$105-120
IV RankModerate (30-45)
Options LiquidityExcellent
Dividend Yield3.3%
Why XOM for Covered Calls & Cash Secured Puts?
XOM offers excellent dividend yield plus premium for total returns. The company has a strong balance sheet and commitment to dividends through cycles. Good energy sector exposure.
Example Covered Call Trade
XOMCovered Call
Strike Price$115 (6% OTM)
Expiration30 days
Premium$1.80 per share
Return If Flat1.7% ($180)
Return If Called7.4% ($800) + dividend
Keep Probability72% keep shares
Recommended Strategy for XOM
Sell calls 5-7% OTM to supplement the strong dividend. XOM works well for the wheel when accumulating during oil price weakness.
Risks to Consider
- Oil price volatility
- Energy transition risks
- Regulatory environment
- Climate change concerns
Analyze XOM Covered Calls Now
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