On Friday’s CNBC’s Options Action, the crew analyzed the performance of the DOW stocks. Exxon Mobil (XOM) was the hardest hit stock in the markets this week, down 17%. With only 5 historical occurrences of 1-week drops, larger than 17%, all produced significant gains immediately after. XOM was extremely oversold compared to the DOW and Energy stocks, provides a rebound potential. Expecting a quick bounce higher, Michael Khouw suggests buying a Mar 77.5/82.5 Call Vertical for a $1.20 Debit.
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