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Mike Khouw Sees Unusual Options Activity In Market Vectors Oil Services ETF

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On CNBC's Options Action, Mike Khouw spoke about a bearish options trade that he noticed in Market Vectors Oil Services ETF (NYSE: OIH) on Wednesday.

The options trading volume was approximately four times higher than the average daily volume and Khouw explained that the action was unusually large because an institutional trader decided to roll out a bearish trade opened back in December. The trader sold to close 20,000 contracts of the February 34 puts and bought 30,000 contracts of the April 30 puts for $1.25. For this trade to be profitable Market Vectors Oil Services ETF would have to trade to $28.75 or 15 percent lower at the April expiration.

 

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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media