Attention, those of you who own Vaneck Vectors Oil Services ETF (OIH): OIH has enacted a 1 for 20 reverse stock split. As a result, some alterations need to be made to your Snider Investment Method worksheets.
Lattco PRO & Lattco AutoPilot clients: the adjustments have been made for you and should be reflected in your account by next Trade Day.
We’re here to help! If you have a position in OIH, here is a link to the 1-for-20 split document that will tell you step-by-step what to do. Please contact us at 1-888-676-4337 or firstname.lastname@example.org if you have any questions about your OIH position.
Reverse splits can make the implementation of the Snider Method difficult on a monthly basis since the Level is less than 100 after the reverse split. However, we don’t recommend an alternative action like transmogrification at this time for a few reasons.
First, since this is an Exchange Trade Fund (ETF), the risk of bankruptcy is significantly reduced in a potentially risky sector. Next, to return to our original Level, we would need to move to a very low priced stock. At this time, we recommend continuing to purchase at your new Level even if you can’t sell a call this month.
OIH is in a frustrating position as it has declined significantly since we initially purchased shares. In some cases, it has been and will remain in winter until the price appreciates. The reverse split may create additional difficulty in implementing the standard Snider Method. At this time we are not recommending clients sell the shares.