Occidental Petroleum (OXY) stock has mirrored the recent rise in oil futures, as seen in the June 26 WTI futures contract. One profitable way to play it is to sell short out-of-the-money (OTM) OXY put options for one-month expiry.
OXY closed at $56.84 on Thursday, May 14, up over 1.1%. It has also risen from a recent low of $53.03 on May 8, and a 3-month trough of $45.49 on Feb. 12. However, OXY is still well below its 3-month peak of $66.24 on March 30, just before the Iran war.
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