|Bid||14.44 x 3100|
|Ask||14.45 x 3200|
|Day's Range||14.36 - 14.69|
|52 Week Range||9.00 - 48.85|
|Beta (5Y Monthly)||1.90|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 02, 2020 - Nov 06, 2020|
|Forward Dividend & Yield||0.04 (0.27%)|
|Ex-Dividend Date||Jun 12, 2020|
|1y Target Est||16.05|
Occidental Petroleum (NYSE: OXY) had ambitious growth plans when it launched its bidding war for Anadarko Petroleum last year. Instead of expanding production and the dividend, the company has had to trim them down to pay back the debt used to acquire Anadarko. Occidental CEO Vicki Hollub gave investors a glimpse at what lies ahead during the second-quarter call, including a tentative plan for 2021.
The sector has rebounded in recent weeks, but investors still expect declines in the stock prices of some companies in the industry.
On Thursday, shares of Occidental Petroleum (NYSE: OXY) saw unusual options activity. After the option alert, the stock price moved down to $14.8. * Sentiment: BEARISH * Option Type: TRADE * Trade Type: PUT * Expiration Date: 2020-08-14 * Strike Price: $15.00 * Volume: 891 * Open Interest: 57773 Indications of Unusual Options Activity One way options activity can be considered unusual is when volume is exceptionally high. The volume of options activity refers to the number of shares contracts traded for a day. Unsettled contracts that have been traded, but not yet closed, are called open interest. These contracts are not closed because a buyer has not purchased a contract, or a seller has not sold it.When a contract has an expiration date in the distant future, it is generally another sign of unusual activity. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset.Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin.Bullish and Bearish Sentiments Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price.Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity.Using These Options Strategies Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alertsSee more from Benzinga * Benzinga's Top Upgrades, Downgrades For August 13, 2020 * Earnings Scheduled For August 10, 2020 * Occidental Petroleum Earnings Preview(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.