Retail traders are piling into bets on oil prices, drawn by a wildly volatile rally in global energy markets sparked by the Iran war.
Flows from small investors into the United States Oil Fund — an exchange traded fund tracking US oil futures known by its USO ticker — reached a record $115m over the past five trading days, according to figures from VandaTrack. Activity in options linked to USO, typically another hallmark of retail involvement, surged to its highest-ever level this week, Bloomberg data shows.
Options activity has also surged to four-year highs in UCO, ProShares’ crude oil ETF that uses leverage to magnify investors’ gains or losses, suggesting rising retail demand.