I’ve been digging into oil lately and wanted to get some feedback from people who trade this more actively.

I’m considering opening a put spread on USO, at the current 145 price or USO, I’d open a 140/120 spread with an October expiration. My general thesis is that oil prices are elevated right now and could come down before midterms, even if it doesn’t happen immediately.

I’m not necessarily expecting a full collapse, more of a moderate pullback into the 120s range over the next few months. I like the defined risk aspect of the spread vs just buying puts, especially if things chop around before moving lower.

Curious how others would approach this:

Do these strikes make sense for that thesis?

Would you go closer to the money or wider on the spread?

Is timing the bigger risk here vs direction?

Appreciate any thoughts, especially from people who’ve traded oil or USO options before.