Oil $68.50 - too much momentum to short and way too soon before the holidays. SCO, however, is getting interesting again below $17.50 but we should be patient.
SCO Sept $16 puts can be sold for $1 - not an exciting number for the STP so we'll wait a bit but net $15 is a good floor. The Sept $15 ($3)/18 (1.50) bull call spread is a good play as $17.50 is $68.50 and we're expecting to be below that so, at the moment, the combo with a full cover is net $0.50 on the $3 spread or net $1 with just 1/2x cover so I think I'd go for that and sell 10 puts ($1,000) against 20 bull call spreads ($3,000) for net $2,000 on $6,000 worth of spreads that are pretty much in the money.
I guess we'll make it official for the OOP and we'll add to it happily if oil goes higher and SCO goes lower.
