207 days ago • Posted by Charles-Henry Monchau

Call buyers are chasing Cyclical recovery names such as Exxon Mobil (XOM)

As we have seen earlier this year with Tech names, call buyers can trigger a positive (and then negative) feedback loop as call buying forces dealers to gamma hedge and thus to chase the price if positive momentum continues until...the trend breaks. Call buyers have switched out of Technology stocks into the rotation/cyclical plays. But the current Net Call Value Traded as a % of Market Cap is still low. This trade might thus have some legs - source: @Macrocharts.   

Exxon Mobil (XOM) chart and Net call value traded (as a % of Market cap)