Thursday, September 24, 2009

Doubling down on Oil

Went back in to oil yesterday. Did a covered calls with USO at 35.56 and Oct 36 calls (UBOJJ) at 1.25 for a net investment of 34.31.

Oil is off some more today.   Did covered calls with USO at 34.02, Oct 34 calls (UBOJH) at $1.47 for a net investment of 32.58.  My initial investment yesterday was about half of what I normally do with my SPY buy-writes, so I didn't feel too bad putting some more money down.  Mostly in cash other than the USO and my other static long holdings. The market in general looks soft to me.  I could see S&P 500 (SPY) dropping to the low end of its trend line channel -- which would be around 103.

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