Investors are regaining confidence in oil after a selloff earlier in the year.
optionMONSTER's tracking programs detected unusual put selling yesterday in the United States Oil Fund, which tracks crude prices. A single trade in the November 29 contracts stood out in the session, with 6,000 sold for the $0.34 bid price. Previous open interest was 501, so it was a new opening position.
The trade was a bet that the USO will hold above the June around $29 through expiration. He or she also showed willingness to buy the fund if closes below the strike price. (See our Education Section for more on why investors sell puts .)
USO fell 0.33 percent to $35.83 yesterday, and has regained about half of the ground lost through the second quarter.
More than 88,000 options traded in the fund overall, compared to the daily average of 25,000 over the last month. That volume was evenly divided between calls and puts.
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