Options traders are considering selling put options before Occidental Petroleum’s earnings announcement due to elevated implied volatility. Selling put options can provide upfront premium income and lower breakeven points for traders. However, there are risks involved, such as potential assignment and unlimited losses. By selling options before the earnings report, traders can benefit from the drop in implied volatility post-announcement. For example, selling a $47-strike put on OXY would yield a premium of around $97, with potential risks and benefits outlined. It’s essential to understand the risks involved and consult a financial advisor before making any investment decisions.

Read more at Barchart: Using Puts to Get Paid While You Wait