Today both my SSO 20 Apr Put and my POT 60 Apr Put expired worthless. The POT play was a fairly conservative OTM put that was placed after POT had a large drop and bounced off its 50 Fibonacci Retracement. SSO was a fairly aggressive move, betting that the market would either stay flat or move up into the first round of Q1 Earnings reports.
I'm now looking for some new positions for May expiration. I've been putting off selling some puts until we get a decent pullback in the broad market, and raising volatility a little. If I wait too long, or can't come up with an idea soon, the time value will decay too much and no OTM puts will be worth it.
I'm also considering a bullish play on USO, say selling a LEAP that is a little OTM and buying a call with the profits. Oil can't stay this low forever, and if the amazingly positive earnings reports continue, demand will take off as we 'clear' the recession.
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