Falling Oil Prices Weigh on Occidental Petroleum Stock

OXY is seeing well-priced premiums at the moment

Deputy Editor
Sep 20, 2021 at 10:17 AM
    facebook twitter linkedin


    The oil sector is seeing pressure today as crude prices fall, weighed down by a hardening U.S. dollar, and the China property market, while U.S. Gulf oil output started up again following hurricane damage. One of these energy names, Occidental Petroleum Corporation (NYSE:OXY) stock was down 4.2% to trade at $25.80 at last check. 

    The 100-day moving average, which kept a tight lid on the shares for the past month, flipped into support last week. However, today's negative price action has OXY testing that trendline. Year-to-date, the equity is still up 48.6%. 

    Of the 19 analysts in coverage, eight carry a "strong buy" rating on Occidental Petroleum stock, with nine at a "hold" and two at a "strong sell." Meanwhile, the 12-month consensus price target of $34.40 is a 34.3% premium to current levels. 

    Over in the options pits, though calls are winning out on an absolute basis, puts are much more popular than usual. This is per OXY's 10-day put/call volume ratio of 0.37 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 90% of readings from the past year. 

    That said, speculating on the security's next move with options could be a prudent play. The stock's Schaeffer's Volatility Index (SVI) of 51% stands higher than just 11% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

     

    Stop leaving money on the table with the same old broken options trading approach...

    There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

     
    Schaeffer's Daily Bulletin Offer
     


     


     
    Special Offers from Schaeffer's Trading Partners