J.P. Morgan Suggests Selling Strangles on Exxon Mobil

J.P. Morgan is out with a research note this morning, where it suggests that traders sell strangles on Exxon Mobil

as the stock should remain range bound. J.P. Morgan analyst, Katherine Minyard, was out with a research report this morning where she upgraded XOM to Neutral, from Underweight. The analyst believes that she “sees a more balance risk-reward outlook over the coming months.” To play this thesis JPM options analysts suggest that you sell the May2012 $82.50/87.50 strangle for $2.25. Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products.