Time to Drum Up Some Oil?

Oil futures have fallen significantly over the past month and a half after reaching $80 in October. The United States Oil Fund ETF (NYSE: USO) has followed suit as well, contracting from a high on Oct 21st of $42 to its current 35 and change.

Although the United States Oil Fund ETF is now in a downward trend, recent activity looks to be excessive, and the Bollinger bands are very wide making the case for a snapback rally or at least a contraction in volatility. Support has been floating around the $35 level for the past seven months as well, supporting this thesis.

I would suggest getting long the USO and then selling the Jan 2010 37/34 strangle for 2.10.