Occidental Petroleum is drawing bullish option activity ahead of its earnings report next week.
optionMONSTER's monitoring program shows that 5,000 August 73.50 were purchased in one print for $0.40 yesterday. This is clearly a new position, as open interest in the strike was a mere 40 contracts before the trade occurred.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
OXY fell 0.34 percent to $73.91 yesterday and is down 4 percent in the last three months. The oil and gas producer is scheduled to announce quarterly results before the market opens next Wednesday, Aug. 3.
Overall option volume in the name was twice its daily average yesterday. Calls outnumbered puts by a bullish 4-to-1 ratio.
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