OXY: There’s Money in This Free Trade

[] Garrett {NAME} talks about the best way to make money on a stock that you might not know much about. It’s called Occidental, and it’s one of Warren Buffett’s favorite stocks. To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] BONUS: Join Lance Ippolito’s Unusual Options Secrets Annual Class Tomorrow at 1pm Eastern To Learn How To See What CONGRESS Is Buying! [>>RSVP For The Training Here<]( [] OXY: There’s Money in This Free Trade Dear Fellow Trader, Stop what you’re doing. There’s money to be made. For some reason, people act like oil prices are going to collapse. Do you know who doesn’t? Warren Buffett. Do you know how I know? Because he keeps buying up shares of Occidental Petroleum Company (OXY). Last month, we learned Berkshire Hathaway (BRK.A) bought another $246 million in shares of the Houston-based driller. Occidental is one of my favorite stocks to trade. And today, I’ll show you one of my favorite options strategies to boost income, increase your chance of winning, and the specific metrics that catch my attention. Let’s dive in. Trading OXY Occidental is a major player in oil production in Texas. If you’re a baseball fan, prepare to see a lot of Occidental advertising on the jerseys of the Houston Astros. Shares are currently around $61.00. Occidental has an average price of $74.00 from Wall Street analysts with a larger upside of $84.00. I think the upside is higher. Why? When the company’s debt returns above Investment Grade, it’ll be a very attractive opportunity for institutions. Occidental is rated BB+, just below Investment Grade. As the company continues to pay off its debt, increase its dividend, and buy back stock, it will be even more attractive. OXY currently has an F score of 7, but future buybacks will increase that figure. In addition, it trades at a very low enterprise value to earnings before interest and tax (EV/EBIT) of 10x. Its net margin is north of 18%, historically strong against the industry and its relative historical performance. And then there’s Warren Buffett. Berkshire Hathaway has permission from regulators to buy up to 50% of the company. Knowing how and where Buffett buys the stock is very important. Take a look at the chart below. Occidental has been a terrific momentum stock in the last 18 months. However, it bottomed out on three occasions in the last year. [] First, during the massive hedge fund dump in June 2022. Second, during the global liquidity challenges in October 2022 (thanks a lot, United Kingdom). And third, a recent downturn linked to a lack of financial interest in oil from commodity traders due to recessionary concerns. In each case… Buffett has bought the stock. Berkshire isn’t buying up shares when the stock pops above $70. Berkshire is stalking – waiting to buy OXY when it gets back around $60. That’s the Buffett Buy Zone. [] You should follow this pattern as well. How do I Trade OXY? You could build a trove of OXY stock like Berkshire if you’d like, but there are better ways to trade it. The best way is to sell a put spread on OXY in positive momentum conditions. So, when capital is flowing into the market – and the energy sector, I like to go back down into the $50s and sell spreads. I start by going out 60 days on OXY and find an attractive price where I’d be content to own the stock. Given that Buffett liked buying the stock around $58, I keep my eye on the $55 put. If I sell that put, and the stock falls under that level, I’ll be assigned the stock. However, I am betting that it either won’t get to that level, or I’LL GLADLY buy the stock because it’s likely set to rebound (when Buffett likely makes another purchase). In fact, with the stock now down in , why not go lower. Typically, if I’m selling a $55 put, I will need to put up a significant amount of margin. In the case of OXY, the January 19, 2023, $55.00 put costs about $0.52. This means I’d only generate about 1.00% on my return if I just sold a cash-secured put. I’d also need about $5,450 in margin. That’s not what I want. So, I can buy the $52.50 put and protect myself in the process. If the stock falls under $50, the most I can lose is the margin between the $55 and $52.50 spread. If I sold this spread, I’d require about $224 in margin to make $26 over the next 60 days. That’s a 11.1% return with a probability of profit of about 87.3%. Now, this is strictly an educational trade. If the stock goes up, the value of the spread goes down. As a result, we make money. If the stock just trades sideways, the value of the spread will decay. As a result, we’d make money. If momentum is positive and the stock pulls back, we’d be happy to own it at a lower level. But if momentum goes negative, we can just cut our losses and look for an opportunity to reenter this position. Rather than expose ourselves to $5,450 in equity risk today, it’s really clean to trade these put spreads and seek optimal gains. This trade itself offers an annualized return of 68% – meaning you can do this over and over again in optimal conditions – and make nice gains on lower-risk strategies. [] Enjoy your day, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] “It’s NOT about what the Fed decides in December… It’s about what Congress is buying and selling heading into December!” Lance Ippolito is bringing back the famed [“Unusual Options Secrets” training class]( tomorrow, Wednesday at 1pm Eastern! The last time he hosted this particular training event was November of last year… And no joke, it was one of the BEST events we had in 2022. He literally gave away all his best stuff! And this year, he’ll dive into: • The latest “unusual” transactions from some of the BEST traders on Capitol Hill… • See why publicly elected officials are quite bearish on stocks but & going “all in” on the options… • Learn how to read and track grossly unusual options activity inside the options market. • Plus, discover how Unusual Options can give you the THREE most important elements of any trade. (Direction, Timeframe and Size) So before you peace out for Thanksgiving, we HIGHLY encourage you to attend this once a year training Lance is doing… [Confirm Your Attendance Here]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] [] [] BONUS: Join Lance Ippolito’s Unusual Options Secrets Annual Class Tomorrow at 1pm Eastern To Learn How To See What CONGRESS Is Buying! [>>RSVP For The Training Here<]( [] OXY: There’s Money in This Free Trade Dear Fellow Trader, Stop what you’re doing. There’s money to be made. For some reason, people act like oil prices are going to collapse. Do you know who doesn’t? Warren Buffett. Do you know how I know? Because he keeps buying up shares of Occidental Petroleum Company (OXY). Last month, we learned Berkshire Hathaway (BRK.A) bought another $246 million in shares of the Houston-based driller. Occidental is one of my favorite stocks to trade. And today, I’ll show you one of my favorite options strategies to boost income, increase your chance of winning, and the specific metrics that catch my attention. Let’s dive in. Trading OXY Occidental is a major player in oil production in Texas. If you’re a baseball fan, prepare to see a lot of Occidental advertising on the jerseys of the Houston Astros. Shares are currently around $61.00. Occidental has an average price of $74.00 from Wall Street analysts with a larger upside of $84.00. I think the upside is higher. Why? When the company’s debt returns above Investment Grade, it’ll be a very attractive opportunity for institutions. Occidental is rated BB+, just below Investment Grade. As the company continues to pay off its debt, increase its dividend, and buy back stock, it will be even more attractive. OXY currently has an F score of 7, but future buybacks will increase that figure. In addition, it trades at a very low enterprise value to earnings before interest and tax (EV/EBIT) of 10x. Its net margin is north of 18%, historically strong against the industry and its relative historical performance. And then there’s Warren Buffett. Berkshire Hathaway has permission from regulators to buy up to 50% of the company. Knowing how and where Buffett buys the stock is very important. Take a look at the chart below. Occidental has been a terrific momentum stock in the last 18 months. However, it bottomed out on three occasions in the last year. [] First, during the massive hedge fund dump in June 2022. Second, during the global liquidity challenges in October 2022 (thanks a lot, United Kingdom). And third, a recent downturn linked to a lack of financial interest in oil from commodity traders due to recessionary concerns. In each case… Buffett has bought the stock. Berkshire isn’t buying up shares when the stock pops above $70. Berkshire is stalking – waiting to buy OXY when it gets back around $60. That’s the Buffett Buy Zone. [] You should follow this pattern as well. How do I Trade OXY? You could build a trove of OXY stock like Berkshire if you’d like, but there are better ways to trade it. The best way is to sell a put spread on OXY in positive momentum conditions. So, when capital is flowing into the market – and the energy sector, I like to go back down into the $50s and sell spreads. I start by going out 60 days on OXY and find an attractive price where I’d be content to own the stock. Given that Buffett liked buying the stock around $58, I keep my eye on the $55 put. If I sell that put, and the stock falls under that level, I’ll be assigned the stock. However, I am betting that it either won’t get to that level, or I’LL GLADLY buy the stock because it’s likely set to rebound (when Buffett likely makes another purchase). In fact, with the stock now down in , why not go lower. Typically, if I’m selling a $55 put, I will need to put up a significant amount of margin. In the case of OXY, the January 19, 2023, $55.00 put costs about $0.52. This means I’d only generate about 1.00% on my return if I just sold a cash-secured put. I’d also need about $5,450 in margin. That’s not what I want. So, I can buy the $52.50 put and protect myself in the process. If the stock falls under $50, the most I can lose is the margin between the $55 and $52.50 spread. If I sold this spread, I’d require about $224 in margin to make $26 over the next 60 days. That’s a 11.1% return with a probability of profit of about 87.3%. Now, this is strictly an educational trade. If the stock goes up, the value of the spread goes down. As a result, we make money. If the stock just trades sideways, the value of the spread will decay. As a result, we’d make money. If momentum is positive and the stock pulls back, we’d be happy to own it at a lower level. But if momentum goes negative, we can just cut our losses and look for an opportunity to reenter this position. Rather than expose ourselves to $5,450 in equity risk today, it’s really clean to trade these put spreads and seek optimal gains. This trade itself offers an annualized return of 68% – meaning you can do this over and over again in optimal conditions – and make nice gains on lower-risk strategies. [] Enjoy your day, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] “It’s NOT about what the Fed decides in December… It’s about what Congress is buying and selling heading into December!” Lance Ippolito is bringing back the famed [“Unusual Options Secrets” training class]( tomorrow, Wednesday at 1pm Eastern! The last time he hosted this particular training event was November of last year… And no joke, it was one of the BEST events we had in 2022. He literally gave away all his best stuff! And this year, he’ll dive into: - The latest “unusual” transactions from some of the BEST traders on Capitol Hill… - See why publicly elected officials are quite bearish on stocks but & going “all in” on the options… - Learn how to read and track grossly unusual options activity inside the options market. - Plus, discover how Unusual Options can give you the THREE most important elements of any trade. (Direction, Timeframe and Size) So before you peace out for Thanksgiving, we HIGHLY encourage you to attend this once a year training Lance is doing… [Confirm Your Attendance Here]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States