USO August $100 Put Offers 18% Yield as Trump’s Hormuz Blockade Jolts Oil

3 articles · Updated · CNBC · Jul 13

$2.40 is the premium cited for selling the USO Aug. 28 weekly $100 put, a trade pitched to exploit the oil volatility triggered by Trump’s reinstated Strait of Hormuz blockade.
45-60 days out and around a 30-delta strike, the setup aims to harvest elevated implied volatility while keeping the break-even at $97.60, about 10% below the referenced purchase level.
Record U.S. crude output and a tentative return of Venezuelan barrels could cap any sustained rally, making a runaway upside move less likely for oil and for USO.
Multi-decade-low U.S. Strategic Petroleum Reserve levels and continued Middle East supply strain still provide a floor under crude, even as China’s slowdown and the shift to alternative energy weigh on longer-term demand.
That mix of a supply-supported floor and a production-heavy ceiling leaves oil looking range-bound, the backdrop the report says favors short-premium strategies over directional bets.

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Overview

On July 13, 2026, the United States reimposed its blockade on Iran, prompting Iran to claim the closure of the vital Strait of Hormuz. This action plunged the global energy landscape into renewed uncertainty, as markets had prematurely believed the crisis was over after a partial reopening. The sharp deterioration in US-Iran relations reignited fears of a wider regional conflict, causing immediate turmoil in global energy markets. The resulting volatility led to surging oil prices, supply disruptions, and forced governments worldwide to take emergency measures, highlighting the deep interconnectedness of geopolitical events and global economic stability.

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