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

You want a guy trading every day with a hot as heck track record, check out Griff and PIT.

There are a lot of good reasons to own Occidental Petroleum Corp (Ticker: OXY).

Besides Warren Buffett buying a bunch of OXY, oil is at recent lows after every oil company and their brother rushed to meet demand during the oil crunch from last year after the Biden Administration pushed sanctions. 

Note to self … the Russians are still there and nations are thinking about using the Yuan instead of dollars for global oil transactions.  

Not a win.

OXY is still a winner and the options are in my favorite place.

Let’s get OXY-clean …

Long Term IV Is Ultra-low

To me, this is the easiest trade there is.

Buy slightly long delta strangles on a six-month duration and hold the contracts until something pays. 

With VIX this high a nice trick is to hunt for relatively low vol in a high vol environment. OXY IV is at year-low levels and the market is pricing it like nothing will ever happen again in the oil industry. That is an opportunity.

If VIX backs off, the tide will lift all boats.

If VIX jumps, I am happy I own strangles as long term IVs. will take off.

To Your Trading Success,

AG