How are OXY long put max profit and max loss calculated?

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the OXY long put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.11%), the computed maximum profit is $5,666.00 per contract and the computed maximum loss is -$233.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OXY long put?

The breakeven for the OXY long put priced on this page is roughly $56.67 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.

How does current OXY implied volatility affect this long 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.

OXY Long 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 long put on OXY?

A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.

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 long 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 long put structure on OXY specifically: OXY IV at 38.11% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, 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 long put setup

The OXY long 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 $59.00 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)
Buy 1	Put	$59.00	$2.33

OXY long put risk and reward

Net Premium / Debit: -$233.00
Max Profit (per contract): $5,666.00
Max Loss (per contract): -$233.00
Breakeven(s): $56.67
Risk / Reward Ratio: 24.318

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

OXY long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long 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%	+$5,666.00
$13.13	-77.9%	+$4,353.63
$26.26	-55.8%	+$3,041.26
$39.38	-33.7%	+$1,728.88
$52.50	-11.5%	+$416.51
$65.63	+10.6%	-$233.00
$78.75	+32.7%	-$233.00
$91.88	+54.8%	-$233.00
$105.00	+76.9%	-$233.00
$118.12	+99.0%	-$233.00

When traders use long put on OXY

Long puts on OXY hedge an existing long OXY stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying OXY exposure being hedged.

OXY thesis for this long 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 long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long OXY position with one put per 100 shares held. Current OXY IV rank near 58.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the long 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 long put positions are structurally bearish; 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. Long-premium structures like a long put on OXY are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current OXY chain quotes before placing a trade.

Frequently asked questions

What is a long put on OXY?: A long put on OXY is the long put strategy applied to OXY (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. 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 long put max profit and max loss calculated?: Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the OXY long put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.11%), the computed maximum profit is $5,666.00 per contract and the computed maximum loss is -$233.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OXY long put?: The breakeven for the OXY long put priced on this page is roughly $56.67 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 long put on OXY?: Long puts on OXY hedge an existing long OXY stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying OXY exposure being hedged.
How does current OXY implied volatility affect this long 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.