The Options Insider

Gobbling Up Upside OXY Calls

by | Dec 1, 2015 | Unusual Activity

Gobbling Up Upside OXY Calls

OXY

Occidental Petroleum Corp. (OXY), which was trading today at 76.20 and has an average daily volume of 6,000 contracts and open interest of 250,000 contracts, is seeing heavy call buying in December.? On volume of over 29,000 options traders are gobbling up December upside calls. Traders have bought almost 19,000 of the OXY December 76.5 calls and 6500 of the OXY December 77 calls.

While these traders have been in small blocks there was also a large 10,000+ block of the 76.5 calls purchased.? This action is driving IV up in OXY to up 2 points in December.

This trade should be considered aggressively bullish volatility and the underlying in OXY.