It's come up before in the past, and the original recommendation from Kim was the SO strategies would best work for a portfolio up to 100K. Since then, the fund has been started and @cwelsh is using these strategies trading 100's of contracts.
I think at some point you would need to be very selective and OI would be an issue. Maybe @cwelsh can give us another update as to how the fills are going.
Closed a couple CML trades today:
GD Jan26 207.5 Call: In $3.50; Out $3.00. Loss of 14.9% after commissions
LRCX Jan26 207.5 Call: In $4.85; Out $8.40. Gain of 72.9% after commissions. (Edit: looks like it kept going into the close and reached almost $10, so note that it might be wise to hold at least half into the close on the ones that have been moving)