Two things impress me about OMI:
1. Most medical costs have limited discretionary allowances. Major accidents (weather, freeways, slip/fall, etc.) do not decrease during recessions. This provides continued business that consumables in other industries do not have. According to Bernanke, this sector and travel/tourism (due to the weakened dollar) were the only two that advanced in the month of September.
2. Price recovery in the past 2 weeks. Clearly the sell-off in October was weak. The velocity in returning to the 6 month mean is impressive. Any movement above the mean appears unlikely in the near term (psychologically there are likely some who "just want to get back to break-even and sell").
With a reliable dividend of nearly 2% and moderate IV in the options premiums, a buy-write strategy may have potential.
