United States Oil Fund Options Volume Quintuples After 35% Oil Surge
Oil surged 35% in a single week after U.S. and Israel bombed Iran, marking the second-largest weekly gain on record. During this spike, United States Oil Fund saw buy-to-open option volume quintuple its three-month average with a 0.91 call/put ratio, indicating unusual put demand.
1. Historic Oil Surge
Last week’s 35% jump in crude, the second-largest weekly advance since 1985, elevated United States Oil Fund’s underlying exposures as geopolitical tensions between the U.S. and Iran intensified.
2. USO Options Volume Dynamics
Buy-to-open volume in the Fund’s options surged to five times the three-month average, reflecting heavy positioning around the sharp commodity move.
3. Call/Put Ratio Signals Bearish Bets
The call/put ratio fell to 0.91, indicating that more puts were purchased than calls—an unusual shift compared to prior spikes when calls outpaced puts.
4. Historical Context and Future Outlook
In the four previous 15% weekly oil surges going back to 2009, options buyers favored calls, and oil prices rebounded by nearly 6% on average over six months.