Despite the fact that /CL has hindered Katie and Tony's portfolio this year, the duo decides that it's important to still have a (smaller) hand in Oil with USO. With a High IV Rank and a very inexpensive stock, USO looks to be a prime candidate to get long. However, since they have been burned in the past, Tony thinks it's a better idea to put on a trade that is delta neutral. By trading a Covered Call and shorting 4 Calls with ~25 delta each, this trade is directionally neutral on entry. Katie wonders why not just short 2 of the ATM Calls instead of 4 Calls, and Tony explains that shorting Calls further out allows your stock to make more money before the Calls are worth anything.
Rounding out the segment, Tony quickly explains a possible skewed Iron Condor in TLT, which has a high IV rank and is near a price extreme in recent days.