Integrated energy stocks’ short interest levels
The integrated energy stocks of ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), BP (BP) have all seen mixed trends in their short interest changes so far this April. While the short interest in Chevron and Shell has fallen, it has risen in XOM and BP in April. Usually—everything else being equal—a surge in short interest means a rise in bearish sentiment for the stock.
Specifically, Chevron (CVX) saw a 0.08% fall in short interest (as a percentage of outstanding shares) from March 31, 2017, to April 11, 2017, while short interest in Shell fell by 0.02% during the same period. But XOM and BP both witnessed rises in their short interests by 0.06% and 0.03%, respectively.
If you’re looking for exposure to large US companies, you might consider the SPDR Dow Jones Industrial Average ETF (DIA). DIA has ~6% of combined exposure to integrated energy majors XOM and CVX.
Continue to the next part for a discussion of implied volatility among integrated energy stocks.