Mike Khouw Sees Unusual Options Activity In United States Oil Fund LP (ETF)

Crude oil had another bad trading session on Wednesday and

Mike Khouw noticed unusually high options activity in

. Almost three times average daily options volume was traded in the name and most of that volume was made because of a five-legged trade. A trader closed the April 25 puts for a profit and bought April 24 puts and the April 21 puts. To help finance, this trade a trader sold an upside call spread. The highest volume was in the April 24 and the April 25 puts as 37,200 contracts were traded in each strike. The sale of upside call spread indicates that the trader sees a limited upside in this name, added Khouw.