Legged in to Long Stock, Short Straddle on USO

Not long after I sold covered calls on my 300 long shares of USO oil started to recover.  I didn’t want to roll my covered calls too far from expiration, but wanted to squeeze some more profit from the position.  Yesterday I planned to sell new March 25 puts to go with my March 25 calls, but had a business appointment and didn’t make the trade before left the office.  By the time I got back oil (and USO) was up more than I wanted to toy with.

This morning I saw oil was down.  I expect that dip not to go too far, so while USO was trading at $27.32 I sold to open three USO March 25 naked puts (UBOOY) for $0.75 each and received $212.74 after commissions.  If USO is below $25.00 at March expiry by less than 75 cents I’ll probably buy these calls back.  If it’s less than $26.65 I might buy back my covered calls I sold for $1.65 each.  Outside of those ranges and I might roll the options, but will probably take the assignments.

My current USO exposure is long 300 shares, short 3 march 25 calls and short 3 march 25 puts.  As of 10:49 am that gives me a position delta of 158.70, gamma is -46.20, theta is 26.40, vega is -11.40 and rho is -1.20.  In other words, oil moving higher slowly still helps me.