Occidental Petrol. - OXY - close: 74.16 change: +0.25 stop: 69.45

Why We Like It:
Yesterday oil stocks looked pretty ugly with oil's sharp reversal under $75.00. Investors were quick to buy the dip this morning. More aggressive traders might want to consider buying calls on OXY now. I'd rather look for a pull back into the $72.00-70.00 zone and buy calls there. If we are triggered at $72.00 our first target is $77.00. Our second target is $79.85.

Suggested Options:
I am suggesting the September or October calls.

BUY CALL SEP 70.00 OXY-IN open interest=2615 current ask $5.00
BUY CALL SEP 75.00 OXY-IO open interest=7792 current ask $1.85

BUY CALL OCT 70.00 OXY-JN open interest=  54 current ask $6.20
BUY CALL OCT 75.00 OXY-JO open interest= 313 current ask $3.30

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 72.00
Change since picked:      + 0.00
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       5.0 million  
Listed on August 26, 2009