Oil giants Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are both hitting record highs today after reporting better-than-expected third-quarter results. Strong refining profits helped both companies capitalize on surging diesel prices amid supply disruptions in Russia and the Middle East.
Chevron stock is up 1.3% to trade at $234.55 at last glance, after the company posted adjusted earnings of $5.28 per share, topping Wall Street's estimate of $4.89. Revenue of $67.8 billion also beat expectations of $61.6 billion, while net income nearly tripled to $9.9 billion from $3.5 billion in the year-ago quarter.
ExxonMobil stock is up 1.9% to trade at $186.73 at last check. The energy giant reported adjusted earnings of $4.23 per share, surpassing the $4.08 analysts anticipated. Revenue came in at $113.2 billion, well above the $103.1 billion consensus estimate, while quarterly profits more than doubled to $15.4 billion from $7.5 billion a year earlier.
Despite their chart outperformance, options traders have been more bearish than usual toward both stocks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), CVX's 10-day put/call volume ratio ranks in the 87th percentile of its annual range, while XOM's 10-day ratio ranks in the 100th percentile.
Meanwhile, today's options activity shows traders leaning bearish toward Chevron despite its record-setting rally. CVX's net option delta volume stands at minus 20,375 shares, with bearish pressure accounting for 55.9% of the activity.
ExxonMobil, on the other hand, is seeing more optimistic options activity following its earnings beat. XOM's net option delta volume stands at a positive 89,096 shares, with bullish pressure accounting for 61.3% of today's activity, suggesting traders are positioning for additional upside.
