Investors in the United States Oil Fund (USO) gained access to new options today, expiring on June 17. Key options include a put contract at a $134.00 strike price, currently bid at $3.70, which would allow investors to purchase shares effectively at $130.30, offering about a 1% discount against the current trading price of $134.85. Analytical data indicates a 56% chance the put will expire worthless.
On the call options side, a call contract at a $137.00 strike price is bid at $4.00. If shares are purchased at $134.85 and the call is sold, total returns could reach 4.56% if the stock is called away. This strike is about 2% above the current market price, with a 52% chance of expiring worthless, which would yield an additional 2.97% return.
The implied volatility for the put contract is 58%, while that for the call is 59%. The historical trading volatility for the past year stands at 44%.
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