Big put buying in oil-services ETF

Chris McKhann (chris.mckhann@optionmonster.com)
May 5, 2014

The Market Vectors Oil Services Fund is seeing heavy put buying today even as shares trade near multi-year highs.

optionMONSTER's Depth Charge system shows that a trader bought 3,125 July 49 puts for $0.75 and another block of the same size seconds later for $0.80. The strike's previous open interest was only 137 contracts, so this is clearly new positioning.

The puts weren't tied to any stock trades identified by our scanners today, so the contracts could be making an outright bearish bet. Alternatively, the puts could have been purchased as a hedge on long shares of the OIH or its underlying stocks. Schlumberger, Halliburton, and National Oilwell Varco together make up 40 percent of the fund. (See our Education section)

The OIH is up 0.42 percent to $52.28 today, continuing to climb off its lows of the morning. The exchange-traded fund closed at $52.28 a week ago Friday, its best closing price since July 2011.


More From optionMONSTER