Date: 3/15/23 12:15 pm
Underlying: Vaneck Oil Services ETF
Notes: We are adjusting the OIH trade like what we did with CAT yesterday. We are doing this to handle the current paper losses and convert it to a core trade so that we can manage it to break even of profits.
NOTE: We were going to close the call calendar but markets are so wide at the moment we could only close it for a debit. So we will wait on that leg.
We are buying a long option then rolling our short put down for a small credit.
TRADE ACTION 1: Buy/BTO the 16 Jun 285 put for a debit of around 34.50-35.50
BTO 10x the OIH 16 Jun 285 put
Price: 34.50 – 35.50 debit
TRADE ACTION 2: Roll the 24 Mar 290 put to the 21 Apr 285 put for a credit of around 0.95
BTC 10x the 24 Mar 290 put
STO 10x the 21 Apr 285 put
Price: 0.95 credit
We are adding the long put to create a core trade then rolling the ITM short option down and out for a credit to establish the core calendar.