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That is the scary part of going long right now. USO owns the March contract, but I think we have to wait until the contract rolls and see what March contract does before getting long. I played UCO last month and didn't realize how bad the contango would be to these ETF's. I don't think most...

I was thinking about going long. I think crude will probably trade down until the contract rolls on Friday. Then the March contract will test 40 and I'll play it from there.

You should not be writing puts.

I'm all set with trading options, I was asking the original poster for the numbers he and his friend used so I could help explain why the trade he is putting on won't turn a profit. The only way I can see it possibly working is if the stock drops and the NOV call ends up losing more time value...

What are the real prices and expirations of the stock and options?

XYZ = 100.00 Sell NOV 90 call = 10.00cr Buy DEC 90 call = 10.50db Net .50db NOV call is excercised you are credited 9000.00 and deliver 100 shares of XYZ You excercise the the DEC call to offset the credit and short position. The .50 premium is lost.

You end up loosing the .50 when you excercise to deliver. Calendar spreads are profitable when the short near term option decays faster than the long longer term option.

I guess my first post was not clear enough. Take the rest of your money to the casino at least you'll get free drinks.

IMO you gambled on GOOG risking 7% of your capital on one day of time value. Now you may get lucky and make some $$ today, but you need to understand that money management is the key to staying alive. That $6-$8 in premium may be evaporated depending on where GOOG opens. Just my opinion. There...

This is correct. I suggest you read Capital Gains Minimal Taxes it explains wash sales in detail and how to avoid problems.