I wanted to wait until the end of October before considering some action and since it’s November I decided to dip my toe in the water. I bought 400 shares of OIH at $118.32 this morning and sold 4 OIHKD (Nov $120) @ $3.68 to rake in close to $1,500 for the day. If I get assigned I’ll have made $3.68+$1.68 = $5.36 x 400 = $2,144 or about 4.5% in three weeks. If I don’t get assigned then I’ve averaged down my break even at $114.64 which is a decent place to own OIH. I’m keeping a reserve of 50k to buy more OIH if it dips below $100 over the next few weeks before expiry but hopefully that won’t happen.
OIH has been very volatile but there is plenty of good money to be made if you can stomach the ups and downs. At the end of the day, I decided OIH is a good long term play come rain or shine over the next 12 months so I’ll probably keep playing it. The downside of course is that you need at least $12,000 to buy about 100 shares to even play in the game 🙁
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