A large investor apparently believes that upside potential will be limited in Occidental Petroleum for the next year.
optionMONSTER's tracking programs detected the sale of 4,000 January 2017 80 calls in one print for $2.20 on Friday. Volume surpassed open interest of 2,368 contracts, showing that this is a new position.
Short calls generate income and fix the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief upside will be limited through expiration.(See our Coaching section)
OXY rose 4.49 percent to $68.83 on Friday and is up 8 percent in the last week. The oil and gas producer is scheduled to report earnings before the market opens on Thursday.
Overall option volume in the name was twice the daily average on Friday.
More From optionMONSTER