USO options

misterkel

misterkel

What happened to USO options? They were very liquid and very deep, but the R. split made them go away completely? I don't get it. Anybody know why?
 
I see USO options. What type of broker do you have that doesn't show you options?

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Also see https://www.elitetrader.com/et/threads/uso-options.344004/
 
The old split adjusted options are trading under the ticker USO1. The new options, trading under the new post split USO, just started trading today under the USO ticker. Decent volume today.
 
i can also see USO options on IB, but i have a different issue:

i can't sell my existing options with the following message: "basket derivs restricted".

any idea how to resolve this?
 
unconventional wisdom said:
i can also see USO options on IB, but i have a different issue:

i can't sell my existing options with the following message: "basket derivs restricted".

any idea how to resolve this?
More...
I'm confused why this isn't being discussed more. I am trying to get through to my broker IB to figure out what recourse is left for USO1 option holders.

I have lived through many a reverse split, but it's never been like this! In the past, you just had fewer options and the strike was adjusted for comparable moneyness. No big deal. But that is not what happened with USO.

USO1 is not tradable in the open market, apparently. Only market makes can take the other side of the trade, so it seems. You can only close your position.

What's more, the options are priced way to low. They all lost most of the value they had before the split, even though USO has been strongly higher since the split. This has nothing to do with IV.

USO1 options have no theta. Apparently they don't go down in price due to the passing of time. I wondering if there is some arbitrage opportunity by selling the equivalent in USO options at the right time and then exercising the USO1 options if the short is called away.

I'm trying to figure out what can be done about this, beside filing a class action law suit!
 
stevenpaul said:
I'm confused why this isn't being discussed more. I am trying to get through to my broker IB to figure out what recourse is left for USO1 option holders.

I have lived through many a reverse split, but it's never been like this! In the past, you just had fewer options and the strike was adjusted for comparable moneyness. No big deal. But that is not what happened with USO.

USO1 is not tradable in the open market, apparently. Only market makes can take the other side of the trade, so it seems. You can only close your position.

What's more, the options are priced way to low. They all lost most of the value they had before the split, even though USO has been strongly higher since the split. This has nothing to do with IV.

USO1 options have no theta. Apparently they don't go down in price due to the passing of time. I wondering if there is some arbitrage opportunity by selling the equivalent in USO options at the right time and then exercising the USO1 options if the short is called away.

I'm trying to figure out what can be done about this, beside filing a class action law suit!
More...
This is an historic event, surpassing the Great Depression in some ways--especially in Oil. Playing in Oil derivatives is, imo, extremely high risk right now.

This is resulting in a lot of risk--including new, poorly understood risk. It's every man for himself out there now. Buyer beware, Caveat emptor.

Bankruptcy risk is massive right now, especially for those who didn't make Uncle Jerome's cut list.
https://www.elitetrader.com/et/threads/bankruptcy-risk-required-reading.343761/
 
I have no problems entering orders to open in USO1. This is a broker specific rule.

I have heard of brokers restricting opening orders in split adjusted contracts, but I have never heard of closing orders being restricted. Could be a permissioning issue. Let us know what IB says.
 
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