Occidental's dividend cut should serve as a warning.
It is the covered call, and it can be used in trading ETFs and individual stocks.
The oil company has been in a sustained downtrend and the latest news from the oil patch will not help.
The company needs to hold key support to remain attractive to buyers, but strength is likely if it holds steady.
It looks like oil prices and energy companies are getting hit by a 'perfect storm.'
While a bounce could come soon, recession fears and massive uncertainty will stop a quick recovery.
This could be the end of the Kissinger/Nixon petrodollar system, which has been in place since the 1970s.
As bond yields are cratering, signifying deflation, there will be margin calls and de-risking, and the oil price and energy sector will be hit the hardest.
The oil giant may be best in show in an out-of-favor industry, but would-be buyers of its shares should be patient.
Midstream energy companies and airlines are starting to see insider purchases of their shares.