1. falling knife. I was hoping TSO would rebound off the 77-78 level. However it is starting to look like a falling knife trade. I have my cost basis down below 82 and have sold and 83 call. If it rebounds I will have a good profit. If it continues to drop I will collar it by adding some long-term puts. If anybody else is following this trade, it tends to rebound hard when it finds a bottom. I have seen it run 77-90 in the course of a week. If I were taking this trade now, I would probably buy stock and then sell a call credit spread at the money so you could have some unlimited upside.

#fallingknife