Downside trade in oil services fund

optionMONSTER

The Market Vectors Oil Services Fund saw a bearish combination trade as shares fell yesterday.

A trader bought 15,000 April 39 puts for the ask price of $0.55 and sold the same number of the April 47 calls for their bid price of $0.10, according to optionMONSTER systems. The volume was multiples of the previous open interest at each strike, clearly indicating new positioning.

This combination trade cost $0.45 to open, plus margin requirements. It could be an outright bearish play or a protective collar on a long stock position. (See our Education section)

The OIH was down 1.36 percent to close at $42.77 after hitting an intraday low of $42.26. The exchange-traded fund was near support at $36 three months ago but last week broke above $45, its highest level in a year.

More than 65,000 OIH options changed hands yesterday, compared to the daily average of 8,700 in the last month.

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