Oil’s Big Bullish Options Bets Turn Worthless as Iran Risk Fades

Traders who piled into bullish options bets on oil prices at record pace are waking up to a harsh reality: Most of those contracts are now worthless.

Israel refrained from striking Iran’s energy infrastructure in its long-awaited bombardment of the OPEC nation over the weekend, sending crude prices crashing. That plunge has helped contribute to a chunk of about 800,000 Brent December call options expiring without a profit on Monday as traders’ urge to protect against a price spike evaporates.