In two blocks, a customer bought 215,000 USO Aug 8.5 puts tied to stock of 10.14 on a 13 delta.?
The United States Oil Fund, trading 10.23 (up .19) with an IV30 of 28.13 (down 2.11 points) and an HV10 of 34.07, saw a giant put purchase in August puts.? In two blocks, a customer bought 215,000 August 8.5 puts tied to stock of 10.14 on a 13 delta.? This is an ETF has an ADV of 141,000 contract and open interest of 3.5 million contracts.? Based on the open interest on the strike this is an opening trade.
This appears to be a customer that wants to be long vol in USO with a bias toward the stock going lower.? This could be a hedge or simply a trader that is trying to get short USO through the summer.? Since the trade went up IV has come in and the trade is down.
This trade should be considered bearish USO and bullish USO volatility.