Alert: OIH adjustment

Ticker: OIH
Price: $258.07
Date: 3/25/23 12:15 pm

Underlying: Vaneck Oil Services ETF


This is a short-term adjustment to the OIH trade. OIH continues to move down with the market and with oil prices. We need to prop up the trade to improve our probabilities of profit and be able to take incremental profits from the trade.

Once the call trade is out of the way, this will prop up the puts. We are letting the short call expire worthless today. We will then sell the long call Monday for a slight credit.

However, we need to add this put spread today to give us much more room to the downside, and is cheap. The entire trade should cost around 2500.

Trade Detail:

+10 OIH 14-APR 245 put
-10 OIH 6-APR 245 put

Price: 2.10 – 3.10 debit (start at the mid or lower and work your way up)
Position after trade action:
-5 OIH 24-MAR 310 call
+5 OIH 31-MAR 310 call
-10 OIH 21-APR 285 put
+10 OIH 16-JUN 285 put

+10 OIH 14-APR 245 put
-10 OIH 6-APR 245 put