Yes, execute bit is enough.

While Nautilus in Gnome offers to set some permissions automatically for
the shared folder, it does not set it for parent (home) folder.

Somehow after a fresh install permissions for my home were drwx------.
For newly created desktop users (after the installation), their home 
permissions were drwxr-xr-x.

I have a question: doesnt setting X bit violate any privacy for me? I
would like to share a single directory in my home without loosening
permissons for the rest of home.

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usershares guest_ok=y results in "Permission denied" error
https://bugs.launchpad.net/bugs/389049
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