Andrew Keene's Occidental Petroleum Trade


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


CNBC Trading Nation's Andrew Keene revealed on the show that he is bullish on Occidental Petroleum Corporation (NYSE: 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.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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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.

Posted In: CNBCOptionsMarketsMediaAndrew KeeneTrading Nation