Disliked{quote} I have been spread all over USO, with Oct 19 $34 puts, $40 calls, cheapo $43 calls, and have been selling the near term puts, scored on $37 puts sold for today's expiry, and will be looking to do that again next week for Oct 19 expiry if I can. The whole thing is a mess but I will probably make money on it as long as oil doesn't fall too far...Ignored
If it falls "too far", why worry; it's highly unlikely to crack that 200DMA so you can just roll out, or take assignment and sell OTM calls against the assignment. This is crude we're talking about; nearly always if you're going to get it wrong, it's better to be short puts on a drop than short calls on a rise. Of course that wouldn't work always but as a rule of thumb, it's probably not that bad.
I have no clue what I'm talking about.