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OIH Options Are One to Watch


Particularly if volatility in general pick up.

Well, the volatility picture here looks modestly different from other spots we've looked at lately. But not all that much.

Everything changes hands at volatility levels not seen since last September (these are 6-month graphs here). So the fact that OIH options hover near the lows is unremarkable. Remember, the important thing is how efficiently options price future stock moves, not how the prices relate to a time when everything was in full panic mode.

What's slighly different about OIH? Well, 30-day options look pretty fair versus 10- and 20-day HV. Almost perfectly fair, in fact, as both sit roughly in the mid-40s.

Now, it's an ETF, so you have less chance of a big overnight gap. But even so, it's something to keep an eye on if volatility in general ticks up.
No positions in stocks mentioned.
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