Andrew Keene's Occidental Petroleum Trade

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CNBC Trading Nation's Andrew Keene revealed on the show that he is bullish on Occidental Petroleum Corporation OXY. He noticed institutional call options buying in the name, which makes him confident the stock is going to trade higher to $77.5 by May.

Keene analyzed the daily chart of Occidental Petroleum and he concluded that after the stock breaks above its 50-day moving average, it can trade to its resistance at $77.5. To make money on the potential move higher, Keene wants to buy the May 72.5/75 call spread for $0.75.

The trade breaks even at $73.25 or 5.67 percent above the current price and it can maximally make a profit of $1.75.

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Posted In: CNBCOptionsMarketsMediaAndrew KeeneTrading Nation
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