I totally totally agree with this PUT SALE, and I have one on already. In this case, I am so bullish on BP being that I am bullish on Oil in the Long Term, that I have Put Sells on BP as well as 2017 ad 2018 LEAP Calls on them. Of course, the 2017 are not LEAPS anymore, but I had purchased them as LEAPS when BP was below 30. I am about to add more to this position, hoping that USD goes up, and Oil comes down. Demand for oil from US has been lack-luster, although I do not see less cars on the road (!). Even then with Saudi having a hiccup on raising oil prices, this think will be above $50 in no time. Of course, winter brings its on set of macro economic factors (less driving but more heating oil) for the US, and hence one has to be a little humble when it comes to Commodities and knowing the direction of it 6 months to a year from now. All I know is, that Oil is not going to $25 for a long time.
RIG, CHK, XOM, PSX, COP and BP are all in a similar situation and needs to be looked at to get some additional income from Put Sells or just risk a few dollars by buying some of their LEAPS and putting them away for 6 months to 1 year. I would think that this strategy gives diversification, and also allows one to play oil without going too gung-ho on it. One never knows what Iran, Iraq, Saudi Arabia etc will do to bring stabiliy to Oil.