ThetaOwl

XOM Theta Gang Report

Analysis based on market close March 31, 2026

Theta Verdict

Attractiveness8 / 10
Sizing: Moderate to Full
Primary: Sell put spreads and iron condors anchored to OI support and max pain levels.
Invalidation: Close all credit positions on a sustained break below the $125 gamma flip level.
Confidence:
7 / 10
base 5; +2 strong pinning regime; +1 elevated IV; -1 earnings in 31 days

IV Environment

IV Regime
Elevated
IV vs VIX
IV 38.8% — elevated for a large-cap energy stock.
Favorable?
Yes

Term structure: Steeply inverted: 50.4% for 2-day expiry, dropping to ~33% for 17-45 DTE. Hump at May expiries (~34%).

💰Elevated IV (>30%) provides attractive premium for sellers.
📉Inverted term structure suggests near-term event risk (earnings in 31 days), favoring selling further-dated options.

Pin Risk Assessment

Spot vs MP: Spot $169.66 is 6.0% above nearest max pain ($160).

GEX regime: Strong Pinning (Total GEX +$103.0M — mean-reverting).

Gamma flip: ~$125.00Gamma flip estimated at ~$125, well below spot. Market structure strongly supports pinning above this level.

OI concentrations: Major Call Walls: $180 (40.6K OI), $165 (21.9K). Major Put Walls: $125 (16.6K), $140 (13.5K).

Verdict: Highly Favorable — Massive positive GEX and spot above max pain create a strong magnetic pull for price stability, ideal for credit strategies.

Premium Opportunities

#1
put spread
Sell $160/$155 Put Spread exp 2026-04-17 (17 DTE)
Spot is well above strike. Short put is at the 3/27 max pain ($160) and above the 10-day expected move low ($158.74). Strong put OI at $140 and $125 provides distant support. Positive GEX regime favors mean reversion.
Credit: $0.85-$1.10
Max loss: $4.15
BE: $159.15
Mgmt: Close at 65% max profit. Manage if price closes below $162.50 (next major OI strike below). Exit entirely on a close below $160.
#2
iron condor
Sell $155/$150 Put Spread & $185/$190 Call Spread exp 2026-05-01 (31 DTE)
Capitalizes on the wide expected move (±$14.12) and strong pinning forces. Short strikes are outside the 31-day expected move range ($155.54 - $183.79). Puts target the $125/$140 OI wall zone; calls target the $180 OI wall.
Credit: $1.40-$1.70
Max loss: $3.60
BE: 153.60 / 186.40
Mgmt: Close at 50% max profit. Roll untested side if tested side reaches 21 DTE. Exit entire position if price breaches either short strike.
#3
cash-secured put
Sell $150 Put exp 2026-04-24 (24 DTE)
For sellers willing to take assignment. Strike is below the 24-day expected move low ($156.79) and above major max pain levels for April ($140, $157.5). Provides a 1.2% yield on capital at risk for 24 days in a high-pinning environment.
Credit: $1.80-$2.20
Max loss: $148.00
BE: $148.20
Mgmt: Roll down/out for a credit if put is tested (price < $152.5). Consider assignment if price is between $148 and $150 at expiry.
#4
covered call
Sell $180 Call exp 2026-04-10 (10 DTE) against 100 shares of XOM.
Spot ($169.66) is significantly below the massive $180 call wall (40.6K OI). The call is above the 10-day expected move high ($180.59). The strong pinning regime makes a breakout past this wall unlikely in the short term.
Credit: $1.10-$1.40
BE: Breakeven on shares rises by credit received.
Mgmt: Close call at 65% profit. Roll up and out if price approaches $177.50. Be prepared for shares to be called away at $180.

Risk Alerts

!Earnings on 2026-05-01 (31 days out). IV is elevated in part due to this event. Close or roll all short premium positions before the announcement (approx. 5-7 days prior).
!Ex-dividend date not provided. Monitor for announcement; selling near-term ITM calls risks early assignment.
!Gamma flip is estimated at ~$125. A break below this level would see negative delta hedging accelerate selling. This is the key structural risk level.
!Unusual put flow at the $157.50 and $160 strikes for the 4/02 expiry. This may indicate near-term support testing, but spot remains well above.
!IV term structure is inverted (front-week IV >50%). Selling very short-dated (e.g., weekly) premium carries higher gamma risk despite high theta. Prefer 17-45 DTE.

Read the Theta Gang analysis for XOM for 2026-03-31. This AI-generated report covers regime classification, key price levels, strategy recommendations, and actionable trade ideas drawn from end-of-day options data including gamma exposure, delta exposure, and implied volatility.