
Occidental Petroleum (OXY) hiked its quarterly dividend by 9% - higher than our estimate of 8% last month. This makes OXY stock undervalued compared to its average yield. One way to play this is to sell short OTM puts.
OXY closed at $50.42 on Friday, Feb. 21, down from a recent high of $52.70 on Jan. 15. However, the stock has been fairly flat overall for the past 3 months.