Rig counts have recently ticked higher and with credit and earnings issues improving for some U.S. shale drillers, those companies may seize the opportunity to exploit higher pricing in the near-term.

USO currently resides 10% below its 50-day moving average and 14.6% below its 200-day line, both of which are bearish signals. The ETF labors 23.6% below its 52-week high.

“It’s no surprise to find that the top five most active United States Oil Fund options are puts, led by the now in-the-money June 9.50 put, where more than 81,000 contracts have traded. With most of the action on the bid side, it seems many traders are taking profits on the puts ahead of Friday’s expiration, with USO shares down 3.6% at $9.25, and just off an annual low of $9.20. Meanwhile, the August 9 and June 9 puts have taken silver and bronze, respectively,” according to Schaeffer’s.

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