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Potential Occidental Petroleum (OXY) Trade Has 4.50% Downside Protection

Nov 07, 2017 ( via COMTEX) --

With bearish technical indicators and a 3 STARS (out of 5) hold ranking from Standard & PooraEUR(TM)s, Occidental Petroleum (<a href="">OXY</a>) could be an attractive play for investors according to's patented option-trade picking algorithms. A diagonal spread pairing a long position equal numbers of contracts of the Jan 18, 2019 $52.50 call with a short position inA Feb 16, 2018 $67.50 calls will return up to 8.30% (9.78% annualized, for comparison purposes only). At Nov 6, 2017aEUR(TM)s closing prices, this position will cost about $13.84. A more expensive, but safer, option is a traditional covered call on Occidental Petroleum. This trade involves matching 100 shares of OXY for each sold contract of the Feb 16, 2018 $67.50 call. This position costs $13.84 at Nov 6, 2017aEUR(TM)s closing prices, but the stock can fall to $67.50 at expiration and still return a full profit of 2.70%A (9.78% annualized, for comparison purposes only), thataEUR(TM)s 4.50% downside protection, compared with only 3.58% for the diagonal spread.A

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