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Short USO September Calls

Based on the moves in the dollar over the past month and the fact that there is still global glut of supply, I've developed a bearish view on oil at its current levels.

Earlier, I posted a call ratio backspread on the SCO (a levered inverse oil ETF) approach to capturing a downside move, but oil is still in a technical bullish trend pattern and has plenty of support to break through before it forms a bearish breakdown pattern.  While that trade would not have lost much, it's looking less likely that it will develop the momentum necessary to be a winner.

Therefore, I now suggest capturing some call premium by entering into a vertical bear call spread on the September USO call options.  Here's the trade:

Short: September USO $12 Calls at $0.84
Long: September USO $16 Calls at $0.11

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