$OXY - Potential for Longs
NYSE:OXY has been in this descending channel for a while now and it recently broke the trend line to the upside.
I can see NYSE:OXY bouncing on the order block/retesting the trend line before moving higher.
OXY trade ideas
Long OXYAs growth starts to keep a bearish trend, I expect this breakout to continue on Oxy. I have been layering into call spreads for about a month since the local lows. Lots of room to run on the weekly stochastic RSI rising from low volatility. This stall candle we just printed is bullish and I expect continuation next week since we strongly confirmed this break out. Oxy is a great hedge to the current market right now if you long it.
My plan:
March 60-62.5 Call spreads (already in the position)
OXY: Questionable Financials and Bearish Chart PatternOXY has o.k. financials but not great:
PE: 12.65
Current ratio: 1.00x (below 1.20x is bad)
Quick ratio: 0.76x (below 1.00x is bad)
The EBITDA margin is really strong at 52% and consistently strong over the years. However, its free cash flow varies between significantly negative and positive.
$28 billion in debt
$2 billion in cash (low compared to the debt level)
1.82% dividend yield (not very attractive for a company that's been around since 1920 and in this industry)
$5 billion free cash flow
The company isn't accumulating cash - it's going to debt service and capital expenditures primarily.
The chart pattern doesn't look to have any upside. There's a down-trend since 2011. There's also a down trend since April 2024. An up-trend since a low of $9 has been broken. Price is currently $48. I'd personally be a buyer at $9.
This is not investment advice.
OXY, going long.The energy sector is overlooked. I believe OXY presents itself as a valuable investment for generations. From essential resources to services, there is no doubt there lays a mint of life long cash-flows. Energy prices are volatile and this company is established to survive a stress tested $30 Oil prices.
Occidental Petroleum ($OXY): Buffett-Backed Value Play in Energy
Introduction:
Occidental Petroleum ( NYSE:OXY ) is an energy giant🌍 that’s catching attention for all the right reasons. With Warren Buffett’s Berkshire Hathaway owning 28.8% of its shares, record-breaking production levels, and innovative strides in carbon capture, OXY has positioned itself as a compelling investment opportunity. Despite a challenging year with a -20.33% YTD decline, the company’s improving financials, operational efficiency, and strategic acquisitions point toward significant long-term potential. Let’s break it down. 📈
Key Points
1. Market Context 🛢️
Stock Price: $46.50
52-Week Range: $42.00 - $66.00
Market Cap: $52.3 billion
Market sentiment around OXY is cautiously optimistic. With Buffett’s backing, many investors see the current dip as a potential buying opportunity.
2. Financial Health 💵
OXY’s financials showcase a balance of value and efficiency:
P/E Ratio: 12.7x, below the 5-year average of 18.4x.
Price-to-Book Ratio: 1.43, indicating undervaluation.
Dividend Yield: 1.85%, with room for growth as debt reduces.
Q3 2024 Highlights:
Net Income: $964 million ($0.98 per share).
Operating Cash Flow: $3.8 billion.
Debt Reduction: $4.0 billion, bringing the debt-to-equity ratio down to 0.75.
3. Operational Performance 🚀
Production: 1.4 million barrels/day in Q3 2024, exceeding guidance and setting company records.
Margins: Operating margins improved to 57.01%, driven by lower well and drilling costs.
4. Strategic Initiatives 🌱
CrownRock Acquisition: Boosts Permian Basin operations, positioning OXY for long-term growth.
Carbon Management: Leading in carbon capture technologies, aligning with sustainability goals and opening new revenue streams.
5. Investment Case 🛡️
Buffett’s Confidence: Berkshire Hathaway’s 28.8% stake reflects a belief in OXY’s undervaluation and long-term potential.
Valuation Metrics: Trading at a discount compared to historical averages provides an opportunity for value investors.
Growth Potential: Stabilizing oil prices, improved operational efficiency, and innovation in carbon management suggest significant upside.
Conclusion
Occidental Petroleum offers a unique blend of value, growth, and innovation. With Buffett’s endorsement, record production, and strategic focus on sustainability, OXY is well-positioned to reward long-term investors employing a Dollar Cost Averaging strategy. 🌟
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult with a professional before making investment decisions.
OXY value.OXY at this price presents a solid opportunity. This is a forecast and range of price targets for the next 12-mo. Should Oil prices return to the 70+ levels, we can expect the margins and revenue to show this additional return.
Be better than warren buffet - Buying oxy at 47, buffet bot @65Oil and oil stock are in down trend since trump won the election--> reason trump will do drill baby drill, oil supply increase and it will be cheap, but increasing oil production isnt that quick but any ways . Oxy is sitting at vwap level of 2020. Buffet bot at 65 , i am buying at 47. Are you ready to print money on oil because i am.. Hit like if you enjoy. Oxy pays a great dividend too
OXY BUTTERFLY FORMATIONHello Everyone,
I believe we have formed bottomed on OXY in a way a harmonic pattern called a Butterfly. I have shared my entry level, exit level, and stop loss. Good luck!
OXY another swingOXY is one of my most profitable tickers over time. Looking at crude makes me more bullish as growth stocks overheat. I note a rising average volume and a bottoming BBWP volatility indicator. Stochastic RSI is rising alongside falling price trend, this is bullish divergence. The weekly stochastic broke that resistance, and we are printing and inside week candle here with very small wicks, I believe we are about to pivot. My plan is to swing this into the supply box noted above, I also wouldn't hesitate to take profits at that long term fib.
My plan:
I have started adding Feb 2025 62.5$ calls and will layer in some 60$ calls for a spread, I will keep the position under 1,000$, I tend to have a higher win rate than lose rate with OXY so I am comfortable with this setup.
OXY. LONG.Im in. More aggressive on this stock as it is undervalued. Entry on fib level. Need to pump it from here. Has to hold.
How are risk free trades done (a simple way)🟢 How are risk free trades done (a simple way)
✴️ Rationale
The video shows how to take advantage of an incredibly famous chart pattern:
🥇 The TRIPLE BOTTOM chart pattern🥇
This pattern shows a strong support that have worked at least 3 times, and the video shows how to act when the 4th bottom is unfolding.
The video shows how trade RISK FREE avoiding the risk as soon as the market allows you to do so.
Step 1: Split
Use 50% of your money for the risk free strategy and the other 50% to Take large profits.
Step 2: Set up Stop Loss for both strategies
Both strategies should share the Stop Loss, usually around 3 to 6% and trying to use some previous minimum/maximum prices to adjust.
Step 3: Set up a Risk Free take profits
The first 50% of your capital will have more or less the same Stop Loss and Take profits. Both will be around 3 to 6% of the buy level. If the take profits is hit, you earn enough to pay for the Stop Loss of the other 50%.
Step 4: Find a reasonable Take profits for the returns strategy
The other 50% of your money needs a take profits far away of the buy zone, meaning that you can potentially earn more than 3 times the risk. So at least find for 10% targets, if that's not posible this is not a feasible trade, there is too much risk. Always check previous support and resistance levels.
Step 4: Enjoy
There are 3 outcomes:
1. Both strategies do Stop Loss and you lose around 3 to 6% of the amount of the trade.
2. Your Risk free trade take profits work but your return strategy fail. this is a 0 to 1% return.
3. Both strategies work as expected giving you over 10% return on average.
In the video you'll see opportunities in:
NYSE:OXY
🟢 +10% trade finished (risk free gains)
🟢 +10% trade finished (risk free gains)
🔵 0% trade finished (risk free)
🟢 +25% unfolding (risk free phase)
NASDAQ:DLTR
🟢 +15% trade unfolding (risk free phase)
The idea:
FX:EURUSD
🟢 200 pips trade unfolding (risk free phase)
The idea:
OXYOccidental looks to have built a solid base around the 50.00 level and a false break below that along with yesterdays gap up triggered an early entry with my buy order at 51.60 and stop below support at 49.40. For the next entries I'm watching for 8x21 ema cross, or a close above 53.05 for 2nd entry with the third entry a close above 55.11 and break of those candle highs. an alternate entry is the 21 ema closing above the 89 ema on the daily chart. The stops are will most likely be at 49.40 unless a better level presents itself.
buy 153 oxy and sell 100 xle or 1530 long oxy 1000 short xlei expect oxy to outperform xle
i made my own ratio based on my own proprietary means of making a ratio that i thought worked.
you pay 215 a year in dividends on 100 xle minues the oxy gains of 85
you pay 2100 a year in xle dividends on 1000 xle minus the oxy dividend gain of 850 per year
this trade is very near its all time low.
i expect the trade to work out and i will exit half when the trade gets to zero
netting 500 on 50 units and netting 5k on 500 units
the second 50 units i would run until about +1000 and exit
this would net
20 x50= 1000 so total gain would be 500 plus 1000 or 1500
on 1000 units this would net $ 15,000
i am putting this trade on tomorrow
is my mathe corect?
OXY - more downside below $50OXY - Stock in long term downtrend and at critical support at $50. If fails looking for puts for a move towards $45 and lower. Stock is weak on indicator.
OXY bull put spread AGAINOXY is at the 100 sma on M if you turn on the dividends. IT is RIGHT on top of the 200 sma on the weekly non adjusted dividends. $48 is a NEW low and getting 12% return on risk on a down day is nice...
I will allow this stock to go below $47 before I panic. I would expect a retest anyway, so I'll hold this spread until expiration or until I can close it for .03+ like the last one...
Oxy correction and continuation Oxy looks like it wants to bounce off this 20 EMA on the daily chart. The stochastic still has room to run here on the weekly chart but could easily base here to reset the daily. Volume remains generally up, and war fears and market euphoria continue. I believe we will see the second leg to my next target of 58$ by end of month.
Oxy did pivotThankfully I do not wait until everything comes perfectly into play. I did not see much else appealing stock wise for undervalued sectors so I started to buy into my OXY plan ahead of the hopeful touch of the fib. This has played out nicely, I did end up going with December 55/60 strike spreads and my 60s are already up 60%. Oxy has a long way to run to even touch the 200 EMA on the weekly. You will also note that the weekly stochastic RSI is just starting to coil upward, these war fears are pumping oil and defensive stocks. My initial target is marked, I will sell my 55$ strikes there. Depending on IV I might sell my 60s there as well as theyd be up almost 400%. If we get a pullback I am looking for a larger safer LEAP position for next year.
OXY SurgingAfter holding a double bottom on the daily, OXY created a new Higher Low and it is moving nively.
Using that level as a SL is what I am looking for.
Bull put spread on OXYI think OIL can press higher with the 'port strike'. I also think OVERALL markets need a small pull back and that should press oil higher. AND, this stock has TONS of really nice support here....
It's not over for OXY BABY!!!Market makers are trying to scare you.
Yes, we could hit 46 dollars before moving
back up to the upside. There has been
quite a bit of behind the scenes bullish
maneuvering if you really dig deep into
the layers on OXY Don't doubt me on this one...
this baby is set to fly soon. There is ONE guy
who is gonna make this black gold pump
hard has FAUUK! This is what they always do
before a big move to the upside...make you
doubt...make you fold then BOOM!...you
realize you missed it! Stay strong...stay LONG
on this one BABY!!!
