Okay, so this is an article about a company called Occidental Petroleum. They find and produce oil and gas in different parts of the world. People can bet on how much money this company will make or lose by buying something called options. Options are like tickets that give you the right to buy or sell 100 shares of the company's stock at a certain price. The article talks about how many options people are buying and selling, and which prices they are choosing for these bets. It also tells us some things we should know if we want to make our own bets on this company. Read from source...
- The title is misleading and sensationalized. It implies that the author has conducted a thorough analysis of Occidental Petroleum's options market dynamics, but in reality, the article only provides basic statistics on open interest, volume, trade type, strike price, and total trade price. There is no deeper investigation into the underlying factors, drivers, or implications of these data points.
- The article lacks objective and clear criteria for evaluating the options market dynamics. For example, it does not define what constitutes a high-value trade, how the strike price corridor was determined, or why a certain time frame (30 days) was chosen. It also fails to compare Occidental Petroleum's options market with other similar companies or benchmarks in the industry.
- The article relies heavily on external sources and opinions, such as Benzinga Pro, Analyst Ratings, and Press Releases, without providing any critical analysis or validation of their accuracy, credibility, or relevance. This creates a potential conflict of interest and bias, as well as a lack of originality and independent thinking.
- The article uses vague and generic terms, such as "serious options traders", "educating themselves daily", "scaling in and out of trades", "following more than one indicator", and "following the markets closely". These phrases do not explain how or why these strategies are effective or applicable to Occidental Petroleum's options market. They also imply that there is a universal set of rules or best practices for trading options, which may not be true given the diversity and complexity of the market.
- The article has a promotional tone and purpose, as evidenced by the presence of advertisements, sponsored content, affiliate links, partnerships, and contributors. It seems to aim at attracting traffic, attention, and revenue from readers who are interested in Occidental Petroleum's options market, rather than informing or educating them.
Overall, the article is a poor example of journalism and analysis. It fails to deliver on its promise of providing a closer look at Occidental Petroleum's options market dynamics. Instead, it offers a superficial and biased overview of some basic data points that can be easily found elsewhere. The author should be ashamed of this article and apologize to the readers who expected more from him/her.
1. Buy a call option with a strike price of $57.0, an expiration date of June 18th, 2023, and a contract size of 100 shares. This option has a current bid of $4.60 and offers a potential return of up to 90% if Occidental Petroleum's stock price rises above $61.60 by the expiration date. The risk is limited to the premium paid, which is $460 per contract. This option is suitable for investors who are bullish on Occidental Petroleum's short-term performance and want to leverage their returns with a relatively low initial investment.
2. Buy a put option with a strike price of $57.0, an expiration date of June 18th, 2023, and a contract size of 100 shares. This option has a current bid of $4.60 and offers a potential return of up to 90% if Occidental Petroleum's stock price falls below $52.40 by the expiration date. The risk is limited to the premium paid, which is $460 per contract. This option is suitable for investors who are bearish on Occidental Petroleum's short-term performance and want to protect their portfolio from a possible decline in the stock price.
3. Sell a call spread with a strike price of $57.0 and $62.0, an expiration date of June 18th, 2023, and contract sizes of 200 shares each. This strategy involves selling a call option at $62.0 for $2.40 per share and buying a call option at $57.0 for $1.60 per share. The net credit received is $0.80 per share, or $160 per contract. This strategy offers a maximum gain of $200 per contract if Occidental Petroleum's stock price is above $62.0 by the expiration date, and a breakeven point of $57.80 by the expiration date. The risk is limited to the difference between the strike prices minus the net credit received, which is $430 per contract. This strategy is suitable for investors who expect Occidental Petroleum's stock price to trade within a range and want to generate income from selling options while limiting their exposure to large price movements.