Brian Stutland's Exxon Mobil Trade

On CNBC's Options Action, Brian Stutland said that he is considering buying Exxon Mobil Corporation (NYSE: XOM). He thinks that there could be some more weakness in the name and he wants to sell puts to get lower entry.

He believes that the last week's rally in crude oil is a good sign and a beginning of the bottoming process. As soon as the crude oil jumped above $42.40, which was a turnaround point from March, the market sharply jumped to $45.

Stutland wants to sell the April 72.50 put in Exxon Mobil for $4.75, which set his breakeven to $67.75. The entry price is close to the lows reached last week. He wants to exploit high implied volatility and gather some income and he sees this trade as a great hedge for a long U.S. dollar position.