$OSG trading ranges

13 May 2021

OSG is Jones Act oil tanker shipping company. It's a good long term investment as it trades at a low multiple, has a wide regulatory moat, and is a good acquisition candidate at a valuation range around $4-5 per share.

It's also been a very reliable swing trade for a few years. OSG spikes to $2.50 every once in a while and can be sold and then bought back in the low 2's. Before 2020 the range was similar but wider.

It happened again this week when it spiked above $2.50 on the Colonial pipeline news on Monday 5/10, and is now already back under $2.20.

I just trade the shares. The only useful trade for options traders is to sell the $2.50 calls when it spikes. There are no strikes below $2.50 and what little there is is extremely illiquid.