Energy
OXY
Occidental Petroleum Corporation
Higher premium from Occidental (OXY) with covered calls and cash secured puts. Buffett-backed oil producer.
Monthly Premium2.5-4.0%
Annualized Return30-48%
Stock Price$52-65
IV RankHigh (50-70)
Options LiquidityVery Good
Dividend Yield1.5%
Why OXY for Covered Calls & Cash Secured Puts?
OXY offers high premium with Buffett backing providing downside confidence. Direct oil exposure with Permian Basin assets.
Example Covered Call Trade
OXYCovered Call
Strike Price$65 (10% OTM)
Expiration30 days
Premium$2.00 per share
Return If Flat3.4% ($200)
Return If Called13.4% ($790)
Keep Probability68% keep shares
Recommended Strategy for OXY
Sell calls 8-12% OTM for aggressive income. Good for energy bulls with Buffett vote of confidence.
Risks to Consider
- Oil price volatility
- High debt levels
- Carbon capture investments
- Energy transition
Analyze OXY Covered Calls Now
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