Bullish Oil Option Volume Soars to Record as Traders Sweat Iran Risk

Oil traders are lining up protection against a spike in prices at a rate never seen before on concern that protests in Iran will escalate and result in a disruption to supply.

Monday saw the busiest-ever single day of Brent crude call option trading, following a surge on Friday. Implied volatility and the premium for bullish bets also extended a climb that started late last week and are at the highest level since the US and Israel bombed Iran last June, signaling growing demand for upside insurance.