Unusual Options Activity: OXY

Just saw this on the CNBC ticker, someone made a huge bet on OXY to recover.

“About 8,000 by 12,000 of the November 16 and 20-strike calls traded respectively for a net price of about 60 cents per contract,” Michael Khouw, chief investment officer at Optimize Advisors, said Monday on “Fast Money.”

In total, that’s a bet of about $475,000 in premium, and it might take quite a bit of work for the stock to ratchet up to where this trader needs it to be. The spread breaks even around $16.60 on the underlying stock, or about 18% higher than the current price, and the profits max out at just under 50% higher than where the stock is right now.

www.cnbc.com/2020/08/18/options-trader-bets-nearly-500000-on-big-turnaround-for-energy-name.html