User 305589

Fuel Your Portfolio with These Option Strategies

I suspect that seasonality may not be as reliable this year. A lot of money has already piled into oil and metals in anticipation of an economic recovery AND of the usual seasonal trend in oil. So, oil may still peak in July, but may have little upside left from here. And, since oil stocks usually lead the price of oil, your play could turn pretty bad with a vengeance. Oil stocks are very overbought and could easily correct by 20-30% short term. Imho, it is not worth the risk to play that kind of strategy right here right now. the lower vix (and lower call premiums) don't help, either.
There are much better ways to make 6-10% over the coming 6-7 weeks than your covered call plays. their risk-reward is simply not worth it imho.