Alert: Adjustment – OIH adjustment

Ticker: OIH
Price: $256.75
Date: 5/2/23 12:45 pm

Underlying: Vaneck Oil Services ETF

Notes:

OIH is deep ITM and in danger of being assigned on the short options. Let’s go ahead and manage it now so we don’t have to worry about assignment. 
 
We are going to leave the call credit spread open, that is making some money. 
 
We are only closing the diagonal/calendar. 

 

Trade Detail:

OIH Trade 1: Sell/STC the put calendar for a credit of around 3.70
BTC the 5 May 285 put
STC the 16 Jun 285 put
 
The master portfolio is trading 10 contracts. 
 
Remember, leave the 19 May 290/295 call credit spread alone, that is making money
 

Position after trade action:
-10 OIH 19 MAY 290 call
+10 
OIH 19 MAY 295 call