I've been UCO in the past, sold some calls, and thought oil would stay in the $66-$72 (or maybe $75) range for a while (or until there was a breakout). I consider myself half right on the whole thing.

I've turned short-term bearish and think the new range over the next few weeks will be $75-$80. I think the hint that OPEC will raise production will keep oil <$80.

Strangely enough, I think by the time they raise production, all of the countries will have already hit the new targets, and quite possibly, as soon as the targets are raised, the uncertainly will disappear and oil will actually go up. Of course, I suspect it will go up from the bottom of the $75-$80 range and might break $80 by Christmas.

But I don't see oil at $100 in the near-term (I also don't see the Dow holding $10K) but I also don't see oil <$70 again.

So my strategy is to buy SCO and sell some covered calls, either Nov $13s or Nov $14s.