Noteworthy Tuesday Option Activity: STLD, GBX, OXY

Greenbrier Companies (GBX) and Occidental Petroleum (OXY) recently experienced significant options trading volume, with GBX's volume representing 62.3% and OXY's 61.8% of their respective average daily share trading volumes. This activity was notably concentrated in long-dated put options, specifically the $45 strike for GBX expiring July 2025 and the $35 strike for OXY expiring August 2025, indicating potential bearish positioning or hedging strategies with a longer-term outlook.

Analysis

Greenbrier Companies (GBX) and Occidental Petroleum (OXY) have both registered significant options market activity, with total options volumes representing 62.3% and 61.8% of their respective average daily share volumes. This activity is notably concentrated in long-dated put options, indicating a potential increase in bearish sentiment or hedging with a medium-term horizon. Specifically, for GBX, high volume was observed in the $45 strike puts expiring in July 2025. Occidental Petroleum saw a more pronounced concentration, with 26,154 contracts traded for the $35 strike put expiring in August 2025, representing approximately 2.6 million underlying shares. Given the absence of a stated fundamental catalyst in the report, this options flow suggests that certain market participants are either establishing downside protection for existing long positions or are making outright speculative bets on a significant price decline in these stocks over the next 13-14 months.

Key Decisions for Investors

• Investors with positions in GBX or OXY should treat this unusual put activity as a signal to scrutinize the companies' long-term fundamentals for potential unpublicized risks.
• The specific strike prices highlighted, $45 for GBX and $35 for OXY, now serve as key levels to monitor, as they represent significant points of interest for downside protection or bearish bets.