“Option traders have been eyeing a bounce, though, and at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), USO’s 10-day call/put volume ratio of 1.21 ranks in the 83rd annual percentile. In other words, calls have been bought to open over puts at a faster-than-usual clip,” according to Schaeffer’s Research. “This trend is continuing in today’s session, with United States Oil Fund LP ETF calls crossing at two times the average intraday pace. Most active is USO’s August 14 call, where it appears a number of new positions have been purchased.”
Bullish options action in USO jibes with ongoing inflows to the fund. Since the start of the third quarter, investors have added over $1.1 billion to USO even though the ETF has plunged 32.3% over the past 90 days.
United States Oil Fund
