Noteworthy Friday Option Activity: TGT, OXY, CAVA

Occidental Petroleum (OXY) and CAVA Group (CAVA) are experiencing unusually high options trading volume today, with OXY seeing 65,376 contracts (50.3% of average daily share volume) and CAVA 20,632 contracts (49.9%). Notably, significant activity is concentrated in OXY's $35 strike put option expiring December 2025 and CAVA's $45 strike put option expiring November 2025, suggesting potential hedging or bearish positioning at these specific price points and longer-term horizons.

Analysis

Occidental Petroleum (OXY) and CAVA Group (CAVA) are exhibiting unusually high options trading volumes today, signaling increased investor interest in their derivatives. OXY has seen 65,376 contracts traded, equivalent to 50.3% of its average daily share volume over the past month. Similarly, CAVA recorded 20,632 contracts, representing 49.9% of its average daily share volume.

A significant portion of this activity is concentrated in long-dated put options for both companies. For OXY, 10,017 contracts of the $35 strike put expiring December 19, 2025, have traded, accounting for approximately 1.0 million underlying shares. CAVA shows similar interest, with 10,522 contracts of the $45 strike put expiring November 28, 2025, representing about 1.1 million underlying shares.

This concentrated activity in out-of-the-money, long-dated put options suggests that some market participants are either establishing bearish positions or hedging existing long equity exposures. The substantial volume relative to average daily share trading indicates a notable shift in investor sentiment or risk management strategies for these specific price levels and time horizons, despite the overall neutral sentiment of the reporting.

Key Decisions for Investors

• Monitor the open interest and subsequent trading activity in these specific long-dated put options for OXY and CAVA, as sustained high volume could indicate a growing bearish sentiment or significant hedging pressure.
• Evaluate the underlying fundamental outlook for both companies, considering whether current valuations or future prospects align with the implied downside protection or speculative bearish bets suggested by this options flow.