Your long option has a stop built in as you can only lose the premium. Personally, I wouldn't leave a standing limit order for market makers to see. If the in-built protection is not comfortable enough for you, then it might be better to risk less through a farther OTM strike, do a spread, or do less size.
Thanks for the advice, yes trying to keep it simple for sure. Been looking at some more obscure etf's that have mostly no volume or open interest on many of their options, is it true that a market maker will always buy those back from me if I purchase them? Okay with the maker taking a little off the top, but just new to options and want to make sure I won't be stuck with them.
The market maker will be less willing to transact at a small spread if the contract doesn't have sufficient liquidity. Be assured, you will bear the cost of this spread. They provide a service, you pay the cost. I wouldn't venture into illiquid issues unless there was a compelling reason or no better alternative.
That makes sense Xandman. Single commodities are something that always have passion for, these are mostly extremely low volume etf's or etn's. Futures would be ideal, but the contracts are just too large to feel safe trading. Perhaps it would be smarter to just buy the stock outright of these single etf/etn's? Although the stock is low volume too, but maybe thats still considered a better route than a low volume option?