Occidental Petroleum Corporation (OXY) Covered Calls

Occidental Petroleum Corporation covered calls Occidental Petroleum Corporation (OXY) is an international energy company and a leader in carbon management. Headquartered in Houston, the company operates through three segments: Oil and Gas, Chemical (OxyChem), and Midstream and Marketing. OXY is one of the largest producers in the Permian Basin and Gulf of Mexico. Through its Oxy Low Carbon Ventures subsidiary, it is pioneering Direct Air Capture technology to accelerate the transition to a lower-carbon world.

You can sell covered calls on Occidental Petroleum Corporation to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for OXY (prices last updated Mon 2:55 PM ET):

Occidental Petroleum Corporation (OXY) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
53.77 +0.68 53.76 53.77 25.8M 32 52
Covered Calls For Occidental Petroleum Corporation (OXY)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 54 1.77 52.00 3.9% 74.9%
Apr 17 55 2.30 51.47 5.0% 38.8%
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Occidental Petroleum Corporation (OXY) is a diversified energy giant that has successfully integrated traditional oil and gas production with cutting-edge carbon sequestration technology. The company’s business model is built on high-margin upstream assets in the Permian Basin, the DJ Basin, and the Gulf of Mexico, complemented by a world-class chemical business (OxyChem) that provides stable cash flow. Following the 2024 acquisition of CrownRock, Occidental has solidified its position as a top-tier operator with significant low-breakeven inventory.

By early 2026, Occidental has shifted its focus from transformative acquisitions to operational execution and cost efficiency. A major milestone in early 2026 was the reporting of full-scale commercial operations at STRATOS, the world’s largest Direct Air Capture (DAC) facility, which serves as the proof-of-concept for the company’s 1PointFive subsidiary. Management has prioritized a capital-efficient plan for 2026, targeting $5.5B–$5.9B in spending while delivering modest production growth. With net debt significantly reduced following the sale of non-core assets, OXY has increased its quarterly dividend by over 8% to $0.26 per share, reflecting a commitment to sustainable shareholder returns and a resilient balance sheet.

Competitive Landscape

The competitive landscape for Occidental consists of global integrated majors and large-cap independent producers. Primary rivals that are publicly traded on the NYSE or NASDAQ and offer highly active options markets include Chevron Corporation and Devon Energy Corporation. Chevron represents the global scale of an integrated major, while Devon is a direct peer in the U.S. onshore unconventional space.

Other notable competitors in the E&P and carbon-tech sectors with active options trading include Diamondback Energy, Inc. and APA Corporation. OXY distinguishes itself through its pioneering role in Carbon Capture, Utilization, and Sequestration (CCUS); while many peers are still in the pilot phase, OXY’s 1PointFive subsidiary is already generating revenue from carbon removal credits. This "Carbon Moat," combined with the backing of significant institutional investors like Berkshire Hathaway, provides OXY with a unique risk-reward profile and superior liquidity in the options market.

Strategic Outlook

Strategic innovation is currently focused on Enhanced Oil Recovery (EOR) using captured CO2, which allows the company to produce "Net-Zero Oil" by sequestering more carbon than is emitted during the life cycle of the barrel. The company is prioritizing the expansion of its Geologic Sequestration Hubs, aiming to create a global infrastructure for industrial carbon removal. These efforts are designed to future-proof the company against tightening global emissions regulations while maximizing the value of its massive Permian resource base.

The long-term outlook involves a commitment to a "reinvestment-neutral" capital framework that balances production maintenance with aggressive debt reduction and dividend growth. Management is prioritizing Operational Excellence, utilizing AI and automation to drive additional sustainable cost savings across its midstream and upstream operations. By leveraging its historically successful drilling capabilities and its leadership in climate-relevant technologies, Occidental Petroleum Corporation aims to remain a resilient and high-yielding cornerstone of the global energy transition.