No. of Recommendations: 5
I wonder if Buffett will nibble some more at OXY stock.
I've been riding WEBs coattails on this one for a while now ... only to suffer paper losses. However, I have a theory that there is a low price (~$40) where people (especially Berkshire) are strongly tempted to add shares, so it acts as a kind of floor on the price. Using that theory, I regularly sell puts on OXY. Most of them expire worthless, but once in a while I get assigned and snag some additional shares at a buck or two under the prevailing price. These trades serve to lower my overall basis, and will increase my gains if the stock eventually rises someday.
