Mike Khouw Takes A Look At Exxon Mobil's Dividend

On CNBC's "Options Action," Mike Khouw spoke about Exxon Mobil Corporation's (NYSE: XOM) dividend. He said it's possible to extract from the options market how much it's anticipating dividends will be in the future and it looks like dividends for integrated oil companies are in some danger.

The options market is currently implying a 50% hair cut to Exxon's dividend, beginning as soon as next March, said Khouw. The big issue for Exxon is its cash situation, the cash outflow, he added. Reducing capital expenditure is a part of the solution, but reducing the dividend might be the other part, concluded Khouw.