Crude up, OIH down

Quote from a529612:

Any thoughts on this?
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Only that its pissing me off!!! Been long Crude since it showed signs of life yesterday....HOWEVER, I am also long these damn OIHs

Its all option related. They just wont let the OIH past 136. Also, HAl and BHI are pinned to their stikes something awful and they are about 21% of the OIH.

Barring a gap down of any measurable amount in crude on Teus. the OIH and XLE will poke back up.

Good luck to you!

bullet
 
Not sure why it's down today, but a couple of its 5% to 10% components are down 1%.

Thursday's drop was likely due to 10% component BHI, which fell 9%.
 
why go long oil and OIH?

that sounds like over-exposure to me... in this environment i would be long OIH and short crude as a hedge, just imo
 
If you look at OIH and OIL "Only" today that may not make sense but OIH is overbought compared to OIL. Just a month ago when OIL was 57-58, OIH was about 130.
The other reason is as another dude mentioned was option. I was almost sure OIH will close either at 135 or 140 so I sold PUT 140 and Call 135 for over $7. I will get that $2 profit.
 
Quote from diligent:

why go long oil and OIH?

that sounds like over-exposure to me... in this environment i would be long OIH and short crude as a hedge, just imo
More...

Why go long both.....B/C I was Bullish!! In the 5 years I have been trading energy (yes, I trade energy products almost exclusively) I rarely see Crude up big and the OIH/XLE down or flat. I attribute todays poor action to Options expiration....but I can tell you that this type of day is a rarity, I almost never see this type of divergence (though that is just one trader's observation).

Good Luck,

Bullet
 
OEX day is whack - in general

don't draw any conclusions from observations made on OEX day - except that it was OEX day

many traders are better off not trading OEX day at all. i find that there are only a few of my setups that work on OEX day.

so, i usually don't trade it
 
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