OXY Breakdown

BY MARK SEBASTIAN 

December 14, 2023 

Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.

 

Have a stock YOU want us to review? Email my team here. – Mark

 

Oil and Gas is constantly being fought among politicians.

 

On one side there is ‘drill baby drill’  and on the other is ‘Green Energy.’  

 

I do not have a horse in this race,  but I do have opinions on what companies make money.

 

A name like RIG that hasn’t made money in years…I am going to ignore…But then there are the energy firms that investors love.

 

Warren Buffet is a big time buyer of the company we are discussing today…OXY….

 

He has some good reasons…

 

The PE is relatively low as 12,  the company pays a nice dividend of .67 a year…the company has a huge cash flow of positive 11.78 dollars per share.

 

This is a company that makes money.

 

What I love about OXY is that they have been shedding debt…

After a massive spike in borrowing at the end of 2019,  the company has been slowly paying off these debts.

 

A company that is making money and paying down debt…that is a win.

 

Near term…I’ll leave for Licia…but long term…

 

This is a 70 dollar stock..that is why buffett is buying it.

Your only option,

 

Mark Sebastian

 

P.S. To see the live show every Monday at 10:30 just sign up for any paid service here at Option Pit... or call 888) 872 3301

 

Questions about anything? Leave a comment below!

Mark Sebastian

Founder & CEO, Option Pit

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Mark Sebastian

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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About the Author

Mark Sebastian

Mark Sebastian

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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