Oil has been on a tear this year, both due to concerns over inflation and also as as a result of high demand/low supply dynamics.  Owning oil stocks has generally been a winning trade in 2022, but what if the trend reverses? One smart way to hedge oil exposure is by purchasing puts on an oil-related ETF.  Recently, a large buyer purchased 25,000 puts in SPDR S&P Oil & Gas Exploration and Production ETF (XOP).  The trader bought June out-of-the-money puts in XOP for roughly $10 million in options premium.