$USO volatility and upcoming expiry
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Watching $USO closely here as we approach expiration. The open interest at the 130 and 135 strikes is significant, and with the underlying now trading around 130.29, things are getting interesting for those holding short calls.
The recent move higher, up almost 3% today, is really squeezing out some premium. If we see a close above 130.57 and hold that, the risk of a continued run towards 135 seems to increase, potentially forcing some serious gamma hedging into the close. Conversely, a sharp reversal back below 129 would probably alleviate a lot of that immediate pressure and unwind some of the short-term bullish sentiment. Just something to keep an eye on, particularly if you're exposed to the short side of options here.