$OXY Set Up - Bought a Call Option

OXY 75 Call Nov 18 2022

Got in at $2.91 per contract

Peek-a-boo breakout at this moment with a “hammer” candlestick.

I will have no problem adding more to this one at a lower price.

But I feel we go higher from here:

$OXY daily chart


p.s. I played this one for a very nice gain last time the Stochastics (5,1) was below the 20% line below the chart. Did right well. Big double digit gain that time. See the chart. We’re there again, and normally, I would wait for that 5,1 Stochastics to rise above the 20% mark for my first nibble.

However, with a breakout and a hammer showing, I’m hitting that tripwire and going for it now.


$OXY Weekly chart


$OXY Monthly chart


I think OXY should do well. They’re paying down debt (from the Andarko acquisition) like mad and should be looking pretty darn good financially by the end of 2022.

I’m reasonably happy with the June 2024 $155 calls we have. Not going to get rich on them, but doing fine.

I suggest you take a peek at the following:

  • DVN: Like most US oil companies, doing quite well. Buying other companies. I think it may be undervalued… but that’s just my opinion. And although I’m not a dividend kind of guy, they pay an absurdly large one.

  • MRO: Spewing cash… FCF of $4.5B is about 25% of market cap. You know THAT situation won’t continue for long. My guess is they get bought out soon.

Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

“The whole secret of investment is to find places where it’s safe and wise to non-diversify. It’s just that simple. Diversification is for the know-nothing investor; it’s not for the professional.” Charlie Munger


I’m covering all the oils in this swing trade I just nibbled on a minute ago at $71.07:

$USO daily chart


1 Like

Looking good here.


Interesting thread about $OXY on the Berkshire board. WEB has been steadily increasing shares in $OXY. Waiting for someone in this thread to supply a link to his news that WEB controls 20% of $OXY, whereas the OP claimed 27%. One or the other, it bodes well for those of us in $OXY calls.


Just sold to close my $OXY call options for a very nice gain!

p.s. I should point out I doubled down on this one last Friday, or maybe it was this past Monday. Lowered my average cost per option by more than 60%.