I've been watching SCO also arwen.
I'm with you.... (and doc ?)
Gotta admit, it looks cheap here. Only way that oil keeps going here is if the market blows right through 1550 S&P, and I don't see that happening. Outside chance that oil fills a gap up around $105, but chances are it doesn't even break $100.
I may buy some SCO shares and sell puts and calls against them That strategy is working well with CELG. Likely tomorrow I'll do that very same with 50% of my LVS shares that just got a nice bump AH. I like to sell just outta the money on both sides, the puts and calls. By doing this, you can collect free money. Better than collecting dividends. Just be careful about selling puts against issues that pay a dividend. If you have sold puts when the issue pays it's divi, the puts seller can be liable for paying the dividend. Why this is so, I'm not sure.
But not to worry, I normally only sell puts against issues I'm holding, so I'll be collecting a dividend at the same time. The option premium usually will amount to more money.
interesting post Rg. To be honest i used my first option 15 years ago and i have never used puts, buying or selling. only calls.... i only feel comfortable with that.
i also follow the basic rule to my favor that 75% of option expireworthless.