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Options Action Recap
CNBC.com | February 27, 2012 | 03:45 PM EST

Investors remain fixed on round numbers these days: Dow 13,000… Nasdaq 3,000… VIX below 20.

But there’s another number that had our desk sounding the alarm on the market’s rally: $109. That’s where oil’s trading. But if the jump at the pump had some worrying about the sustainability of the economic recovery, it had our guys searching out crude opportunities. And on last Friday’s Options Action, the goal was clear: provide strategies to play crude on both the long and short sides.

On the long side, Oppenheimer’s Carter Worth and Mike Khouw said the best way to play oil’s rise was the most obvious: Exxon Mobil. With the stock ready to break out, Khouw suggested an outright call purchase. Specifically, he bought the April 90-strike call for $0.80. That call has now traded over 12,000 times and is by far the most active contract on the Exxon board. Imitation really is the most sincere form of flattery. His trade and breakdown are below.

MIKE’S EXXON OPTIONS TRADE

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