We’ve expressed our bullishness regarding the energy sector recently.  Last week we featured the XLE option activity.  Here’s an update on the OIH option flow:   Notable trade in OIH (approx $25.15 at the moment) options that express confidence in potential ongoing strength in the Oil Service sector heading into year end. 16,000 of the Dec 15th expiration 25 calls were sold to roll “up and out” into equivalent amount of the Dec 29th expiration 26 calls. There has also been some modest size buying interest in the January 26 calls as well to the tune of approximately 1250 contracts.

We remain positive on both the XLE and OIH.  At time of publication we are long the XLE and OIH in some managed accounts.