Investors in the United States Oil Fund (USO) began trading new options today expiring in September 2027, with 534 days remaining until expiration. Key contracts include a put at a $100 strike price, currently offered at a $12 premium, and a call at a $135 strike price, with a current bid of $22.50. The put represents an approximate 19% discount from the current trading price of $122.97, while the covered call yields a potential total return of 28.08% if the stock is called away at expiration.
The odds of the put contract expiring worthless is estimated at 77%, resulting in a projected return of 12.00% on the cash commitment, or 8.20% annualized. Conversely, for the call, there’s a 42% chance it may expire worthless, allowing investors to retain shares and the premium, translating to an 18.30% additional return or 12.51% annualized.
Implied volatility for the put contract stands at 51% while the call sees 45%, against a trailing twelve-month volatility of 39% based on the last 251 trading days and the current stock price.
