New Options Available for United States Oil Fund (USO)

Investors in the United States Oil Fund (USO) gain insights into new options available for December 11th, highlighting a call contract that could yield a modest return. The report outlines the investment's potential and discusses the implications for USO's stock.

Date: 26-11-2024

AI Rating: 6

The report highlights new options available for the United States Oil Fund (USO), specifically focusing on a call contract with a strike price of $73.00. At the current trading price of $72.31, the report indicates a potential total return of 1.01% if the stock is called away at expiration, presenting a relatively low-risk scenario for covered call investors.

Furthermore, the report notes that the investor has a 50% chance of the call contract expiring worthless, allowing them to hold onto their shares while also retaining the premium collected, which could provide an annualized return of 1.35% if this occurrence happens. This approach may be appealing to conservative investors looking for supplementary income.

Additionally, the implied volatility for the call contract is stated at 35%, while the actual trailing twelve-month volatility is calculated at 28%. This discrepancy might indicate that investors expect more volatility than what the underlying asset has exhibited historically, potentially influencing trading strategies.

Stocks: USO