MarketMoodz
Bulls Pile Into Occidental Ahead of Earnings as Buffett Stake Looms
Traders piled into bullish options on Occidental Petroleum ahead of its earnings release, signaling confidence in upside and in Buffett's energy tilt. Call volumes ran about seven-to-one over puts, and a notable near-term call spread traded for roughly $175,000, underscoring speculative bets ahead of the report.
Key Takeaways
- Call volume on OXY to put ≈7:1 ahead of earnings
- Monday's session saw roughly three times as many calls bought as sold
- Nine of the ten biggest trades by dollar amount involved upside exposure
- A $175,000 call spread traded at ~63/69 strikes expiring this Friday
- Berkshire Hathaway owns about 27% of OXY outstanding shares as of end-Q1
People Involved
- Warren E. BuffettChairman and CEO, Berkshire Hathaway
Entities Involved
- Occidental Petroleum Corp. (OXY)Oil and gas company
- Berkshire HathawayConglomerate; largest shareholder in Occidental (27% of OXY as of end-Q1)
MarketMoodz Analysis
The combination of Buffett’s large stake and a rising oil backdrop puts Occidental in the crosshairs of investors betting on energy leadership. If the company delivers a solid earnings print, the stock could attract fresh institutional buyers and potentially lift energy names in a market already pricing in tighter supply and higher prices for crude.
Historically, Occidental has shown post-earnings strength in a number of cycles, with 10 of the last 12 reports higher and a notable 10% gain after the February release. That track record, coupled with Berkshire’s energy exposure, helps explain the surge in bullish option activity and the market's willingness to assign outsized upside to OXY near-term bets.
Watch for May 6 earnings commentary and oil-price moves, as well as any signals from Berkshire on capital allocation. The current flow suggests traders expect a positive earnings surprise or at least favorable positioning into the print, but the claims rely on CNBC’s notes and anonymous data with no independent verification provided.
Source: Original Article