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Potential Occidental Petroleum (OXY) Trade Targets 2.92% Return

Dec 05, 2017 ( via COMTEX) --

After Dec 4, 2017aEUR(TM)s trading in Occidental Petroleum (<a href="">OXY</a>)'s option trade-picking algorithms uncovered a trade that offers a 2.92% or 14.63% (for comparison purposes only), while providing 2.92% downside protection. The trade is a Feb 16, 2018 covered call at the $70 level for a net debit of about $68.01. The net debit is also the breakeven point for this trade. For a higher return, consider buying a longer-term call option, like the Jan 18, 2019 at the $50 level. By buying the call for $19.64 instead of paying about $70.05 for the stock, the assigned return rate for this alternate trade is 13.63%, but the stock has to finish above $67.59 when the sold call expires for this trade to be profitable. Technical indicators for the stock have been bearish and support and resistance have been in the area of $69.25 and $71.55, respectively.

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