Volatility has crept back into the market, and energy stocks are reeling.
The energy sector has fallen 10 percent this month as oil broke below $60 for the first time this year and the Dow and S&P 500 dance along the lines of a correction. According to one technician, the sell-off is presenting an attractive buying opportunity for the biggest name in the group: Exxon Mobil.
"[Exxon has been] the real wipeout. So really in terms of super-cap stocks, it's one of the worst performers of the last two weeks," Carter Worth, head of technical analysis at Cornerstone Macro, said Friday on CNBC's "Options Action." The stock is down nearly 13 percent since the start of February.
Worth noted that the weekly chart is truly shocking. Exxon has fallen more than "17 percent peak to trough in two weeks. No other stock of this size has done anything like that."
Nevertheless, Worth explained that this steep drawdown could be a big buying opportunity.
Worth's analysis found that in Exxon Mobil's trading history the stock has seen five 17 percent or more drops over a 10-session period. And following all of those instances, the shares were able to stage a comeback shortly afterward. "After these drops, one month later, it was up every single time, three months later every single time," Worth said.
"I want to make the bet that this is going to happen again ... a prospect of a nice rebound off these lows," Worth said.
Exxon Mobil shares were modestly higher in the $76 range late morning Monday.
More From Options Action
CNBC contributor Dan Nathan discusses his bullish bets on Twitter.
CNBC contributor Mike Khouw discusses his bullish bets on Micron Technology.
Nike's growing problems. Are big hurdles ahead for Nike? With CNBC's Melissa Lee and the Options Action traders.
Mike Khouw of Optimize Advisors gives an overview of how to calculate the implied move for a stock.
Mike Khouw breaks down the critical options concept known as "theta."
What's a call spread, and when should you use it? Mike Khouw breaks down the basics of this critical strategy.
Options Action Newsletter:
Sign up to receive exclusive Options Action content. Each month you'll receive an exclusive message from host Melissa Lee and insight directly from one of the members of our Options Action panel. Keep your pulse on the market with the Options Action newsletter.