My SSO Quandary

I’m looking pretty good going into option expiration Friday for my September puts.  My one naked call (SSO) is holding me back though.  Here’s what I have in my account right now:

Qty  Symbol     Description

-2  +BZDVX       BA Oct 50 Put

-3  +DSXVV       DSX Oct 12.5 Put

-3  +URPVF       EXPD Oct 30 Put

-2  +TVE           T Oct 25 Put

-2  +FCXUK       FCX Sep 55 Put

-2  +SOJUD       SSO Sep 30 Put

-2  +SOJIF         SSO Sep 32 Call

-2  +UCOUE      UCO Sep 12 Put

I’ve been toying with different ideas on how to handle my SSO position.  Clearly the naked puts were a good move and the naked calls were not, but I am where I am.  So, all I can do is deal with what I have and try not to repeat the mistake.  As I continue to wait and contemplate my next move, I continue to lose more on SSO to the upside.  I posted an SSO chart this morning while I was debating my options (no pun intended).  These are the options I’ve considered:

• Buy back my SSO 32 calls for a loss (wish I did that last week) and move on to something new
• Take the option assignment and go short 200 shares of SSO (I already checked with AMTD, they have shares I can borrow to short)

If I take the short position, I’ll have to manage that still and have other options to consider

• I could buy calls to cover any more upside damage, but leave room for profit if SSO falls like I still expect it to.  This is probably my smartest choice.  I could keep rolling the calls higher if I continue to be wrong in my belief the markets will correct more than a few percent eventually.
• I could sell new naked puts to keep the short position alive, unhedged, but with a limited profit potential – basically this is the reverse of a covered call with more risk if SSO keeps climbing quickly I keep losing, if it slows I can continue rolling the puts higher until it doesn’t.
• I could sell September naked puts, only two days remain, so it’s pretty much a plan to exit sooner than later, but with a push to lose less if SSO stays where it is or reduce my cost if SSO rises above my strike – risk would be that SSO could tank before expiration and I’d own 400 shares instead of 200.  That’s within my SSO allotment I’ll allow myself, but might hold off on that for now.
• If I sell October naked puts, I could write four contracts instead of the two needed to cover my short shares – that brings in more cash and increases my upside cushion better, but leaves me exposed to the upside while adding in extra downside exposure.

Most likely I’ll make my trade tomorrow to adjust this position.  At 3:35 pm on Wednesday as I write this, SSO is above the trend line I pegged as resistance in the chart I referenced.  I still see another trend line from the two August high marks that’s staying true.  By Friday I have to make a decision, so it’s going to get interesting soon.  On a positive note I have an SSO long position in my IRA, so at least I’m up on it.