VanEck Oil Services ETF (OIH) – Bullish Options Action Trade for Sept 10th, 2018
On Friday’s Options Action, the crew analyzed the performance of energy stocks. Oil services companies have recently underperformed the energy sector this past year and have reached oversold levels. Coupled with reaching multi-year lows around $23 support suggests a possible bounce higher. Expecting a check back towards trendlines Michael Khouw suggests buying an Oct 21/23/25 Call Risk Reversal for a $0.50 Debit. As of Friday’s close, this spread is trading at $0.55.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: OIH Options Action
Learn to Trade Options: Income Strategies w/ Index Options – Thurs 9/13 @ 4:15PM EST