With IVR (implied volatility rank) at 69 (ThinkOrSwim 52-Week), OIH offers a premium selling opportunity here. Keep in mind that it is an oil services ETF, so if you already have oil/petroleum/exploration plays on, it would probably be advisable to pass on this trade, since in all likelihood it will be closely correlated with instruments like USO, XLE, and XOP, to name a few.
Example:
An Oct 16th expiration 24/25.5/31.5/33 Iron Condor
POP (Probability of Profit): 67%
Max Profit/Buying Power Effect: .28 credit/contract; 1.22/contract
Break-Evens: 25.22/31.78
Delta: -2.06
Notes: I have gone narrower here on the wings with a 1 1/2 wide in order to conserve buying power for other plays. Naturally, going wider yields a greater credit (3-wide wings with the same short strikes yields .35 credit/contract). Given the small credit received due to the price of the underlying, I generally go bigger in terms of the number of contracts with these types of plays. Look to take the entire setup off for 50% max profit.
Example:
An Oct 16th expiration 24/25.5/31.5/33 Iron Condor
POP (Probability of Profit): 67%
Max Profit/Buying Power Effect: .28 credit/contract; 1.22/contract
Break-Evens: 25.22/31.78
Delta: -2.06
Notes: I have gone narrower here on the wings with a 1 1/2 wide in order to conserve buying power for other plays. Naturally, going wider yields a greater credit (3-wide wings with the same short strikes yields .35 credit/contract). Given the small credit received due to the price of the underlying, I generally go bigger in terms of the number of contracts with these types of plays. Look to take the entire setup off for 50% max profit.