$25KP/JPH - As we have nasty restrictions in the $25KP (noted in the review) and as we got stung a few times this year (we were nearly flat a few months ago), I'm trying not to take anymore risks as I'd really like to get us to $35K by the end of the year as our goal is $50K by the end of next year - at which point we can open up our playing style a bit. So, I'm looking for good earnings plays but it's too early to tell who's getting an overreaction. Ideally, I want to find quick in and out plays, not long-term holds, since we have to BUY premium - and we hate to do that...
I was thinking USO and now that CNBC is saying $70 and GS is lowering their outlook - it may be time for us to call a bottom as those guys are idiots. We did buy USO in the STP and, as I often say, the best time to follow us on a trade is AFTER we lose money and decide to DD or roll - that way, you usually start with a 20% better position than we did.
That being the case, I'm thinking, for the $25KP 10 USO April $28/32 bull call spreads at $2.30 is nice as $2,300 returns $4,000 for a nice $1,700 win (73%). Now, before I decide to commit that much, I need to consider what I'll do if oil does drop 10% to $72. That would send USO down 10% to $27.50(ish) and we can figure the April $28 calls will drop to the price of the $31 calls ($1.85).
Since $1.85 is about the net of our spread, I don't mind that and we'd roll to July. What July calls are $1.85?
