By David Russell, reporter at OptionMonster
Occidental Petroleum (OXY) bounced Tuesday, and the Big Oil bulls jumped on board.
OptionMonster's monitoring systems detected unusual activity in the May 80 calls, with large purchases occurring for $3.15. Volume continued to build throughout the session and ended Tuesday at 10,899 contracts, more than twice the previous open interest in the strike, indicating that these are new positions.
Calls lock in the price where investors can buy shares in the Los Angeles energy giant, providing significant leverage in the event of a rally. That's exactly what happened Tuesday because Occidental's stock inched higher after the options hit, and those calls appreciated by more than 10% to $3.50.Occidental shares ended the session up 2.19% to $80.68. The stock has been bouncing in a range for the last year and is now attempting to make a higher low than the level where it based in January. Total option volume was five times greater than average in the company Tuesday. Calls outnumbered puts by a bullish 4-to-1 ratio. Russell has no positions in OXY
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV