Oil Stock Takes a Breather After Friday's Buffett Bounce

OXY already sports a more than 145% year-to-date lead

Deputy Editor
Aug 22, 2022 at 9:34 AM
facebook X logo linkedin


Occidental Petroleum Corporation (NYSE:OXY) is taking a breather this morning, with the shares last seen trading 3% lower at $69.14. On Friday, OXY tacked on 9.9% after regulators permitted Warren Buffett's Berkshire Hathaway (BRK) to purchase up to 50% of the oil giant. Buffett's conglomerate already held 188.5 million shares of Occidental stock, or a 20.2% position, and the 50% stake threshold could potentially add billions of dollars in profit by allowed Berkshire to add the oil company's earnings with its own.

Friday's pop helped put Occidental Petroleum stock within a hair's breadth of its May 31, annual high of $74.04, with the session's positive price action stopping just short of the $73.50 level. The equity just has seen impressive returns in the last two weeks, gaining 11.4% and 8.5%, respectively. Coming into today, OXY stood 145.9% higher year-to-date. 

Options bulls are likely cheering the recent spike in the underlying shares. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Occidental Petroleum stock's 50-day call/put volume ratio of 4.13 ranks higher than 90% of readings from the past year. This indicates long calls have been picked up at a quicker-than-usual clip in the last 10 weeks. 

Those looking to hop on the bandwagon are in luck, as options can be had for a bargain right now. This is per OXY's Schaeffer's Volatility Index (SVI) of 53%, which ranks in the low 16th percentile of its annual range. What's more, the equity's Schaeffer's Volatility Scorecard (SVS) sits at a 93 out of a possible 100, suggesting Occidental Petroleum stock has exceeded volatility expectations during the past calendar year -- a boon for premium buyers.

Short interest, meanwhile, rose 12% over the last month, and there's still room for a short squeeze. The 61.47 million shares sold short make up 6.6% of the stock's available float, and would take over two days to buy back, at OXY's average daily pace of trading. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI