Occidental Petroleum Stock May Be at a Peak - Time to Sell OXY Covered Calls?

Core Insights - Occidental Petroleum (OXY) stock has increased by 23.1% since the end of February, closing at $65.32, and is up 43.6% from $45.49 on February 12 [1][3] - Analysts consider OXY stock to be overvalued, with average price targets around $59.11 to $60.28, despite the potential for further increases if oil prices continue to rise [3][4] - The current market price of OXY reflects expectations of higher oil prices over the next 6 to 9 months, suggesting that the stock may already be priced for future gains [4] Investment Strategy - Investors might consider selling OXY shares if they believe the stock has peaked, but an alternative strategy is to sell out-of-the-money covered calls to capitalize on high premiums [5][6] - The May 1, 2026, expiration option chain shows a $70.00 call option with a midpoint premium of $1.80, offering a potential yield of 2.76% for investors holding 100 shares at the current price [6] - The high premium reflects a significant risk of OXY rising further, with a delta ratio of 33%, indicating a one-third chance of a price increase [6][7]