OXY Cash-Secured Put Strategy
OXY (Occidental Petroleum Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also trades around its assets consisting of transportation and storage capacity; and invests in entities.
OXY (Occidental Petroleum Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $55.88B, a trailing P/E of 11.64, a beta of 0.17 versus the broader market, a 52-week range of 38.8-67.45, average daily share volume of 17.5M, a public-listing history dating back to 1981, approximately 10K full-time employees. These structural characteristics shape how OXY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.17 indicates OXY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.64 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. OXY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on OXY?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current OXY snapshot
As of May 15, 2026, spot at $59.36, ATM IV 38.11%, IV rank 58.56%, expected move 10.93%. The cash-secured put on OXY below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this cash-secured put structure on OXY specifically: OXY IV at 38.11% is mid-range versus its 1-year history, so the credit collected on a OXY cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.93% (roughly $6.49 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OXY expiries trade a higher absolute premium for lower per-day decay. Position sizing on OXY should anchor to the underlying notional of $59.36 per share and to the trader's directional view on OXY stock.
OXY cash-secured put setup
The OXY cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With OXY near $59.36, the first option leg uses a $56.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OXY chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 OXY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $56.00 | $1.10 |
OXY cash-secured put risk and reward
- Net Premium / Debit
- +$109.50
- Max Profit (per contract)
- $109.50
- Max Loss (per contract)
- -$5,489.50
- Breakeven(s)
- $54.91
- Risk / Reward Ratio
- 0.020
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
OXY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on OXY. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$5,489.50 |
| $13.13 | -77.9% | -$4,177.13 |
| $26.26 | -55.8% | -$2,864.76 |
| $39.38 | -33.7% | -$1,552.38 |
| $52.50 | -11.5% | -$240.01 |
| $65.63 | +10.6% | +$109.50 |
| $78.75 | +32.7% | +$109.50 |
| $91.88 | +54.8% | +$109.50 |
| $105.00 | +76.9% | +$109.50 |
| $118.12 | +99.0% | +$109.50 |
When traders use cash-secured put on OXY
Cash-secured puts on OXY earn premium while a trader waits to acquire OXY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OXY.
OXY thesis for this cash-secured put
The market-implied 1-standard-deviation range for OXY extends from approximately $52.87 on the downside to $65.85 on the upside. A OXY cash-secured put lets a trader earn premium while waiting to acquire OXY at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current OXY IV rank near 58.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on OXY should anchor more to the directional view and the expected-move geometry. As a Energy name, OXY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OXY-specific events.
OXY cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. OXY positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OXY alongside the broader basket even when OXY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on OXY carry tail risk when realized volatility exceeds the implied move; review historical OXY earnings reactions and macro stress periods before sizing. Always rebuild the position from current OXY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on OXY?
- A cash-secured put on OXY is the cash-secured put strategy applied to OXY (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With OXY stock trading near $59.36, the strikes shown on this page are snapped to the nearest listed OXY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OXY cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the OXY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.11%), the computed maximum profit is $109.50 per contract and the computed maximum loss is -$5,489.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OXY cash-secured put?
- The breakeven for the OXY cash-secured put priced on this page is roughly $54.91 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current OXY market-implied 1-standard-deviation expected move is approximately 10.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on OXY?
- Cash-secured puts on OXY earn premium while a trader waits to acquire OXY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OXY.
- How does current OXY implied volatility affect this cash-secured put?
- OXY ATM IV is at 38.11% with IV rank near 58.56%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.