The Market Vectors Oil Services Fund is falling fast again with the price of crude, and a large downside trade tops the option activity.
The OIH is down another 2.5 percent to trade at $39.08. The exchange-traded fund opened yesterday at $41 before falling sharply and is now on track for its lowest close since the middle of April.
The option volume of more than 8,200 contracts is twice the daily average and is dominated by a put calendar spread. A trader sold 3,000 May 38 puts for $0.41 against open interest of 17,494 while buying 3,000 June 38 puts for $1.03 against open interest of just 83, according to optionMONSTER's systems.
This appears to be a roll of the long put position to June from the May contracts, which are two weeks from expiration and facing increasingly strong time decay. (See our Education section)
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