Out-of-the-money (OTM) put premiums in Occidental Petroleum (OXY) are relatively high now and they look attractive to sell short for investors to gain additional income. This opportunity works for long-term investors who already own OXY stock.
I discussed the company's huge free cash flow (FCF) in my last Barchart article on Sept. 19, “Occidental Petroleum Looks Cheap Here Given Its Huge Free Cash Flow.” This led me to the conclusion that OXY stock was undervalued at 17x forward earnings and with its 1.09% dividend yield.
