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Options bulls betting on U.S. energy stocks after oil rebound 

May 12, 2017

Saqib Iqbal Ahmed, Reuters

Some U.S. equity options traders are betting that the recent rebound in the price of crude oil spells good news for the battered energy sector.

The S&P energy index is still down about 9.9 percent this year, making it the second worst-performing sector among S&P's tracking indexes. That contrasts against the broad benchmark S&P 500 stock index, which is up 6.9 percent for the year.

Recent trading in the options market, however, shows traders putting on bullish bets in both options on exchange traded funds exposed to the energy market and individual stocks.

"The commodity has sort of turned and bounced off the low around $46 and with that you've had an obvious bid to the upside," said Jim Strugger, MKM Partners derivatives strategist said about the price for a barrel of crude oil.

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