Big sale today for those in need.

[trefoil]

Selling on either side of an underlying. Hmm.
OK, so your main risk is a large downside move. Relative to where it was on 6/25, SPY is pretty close, but there was a large move south in between.
I find it a little hard to believe you would have stayed with this position throughout that move, given the size of the drawdown would have been multiplied by the number of sold puts. But whatever; not something I'd do, certainly, but if you can take the excitement and have enough margin to see you through that kind of a move, fine.

 

[KINGOFSHORTS]

Quote from trefoil:

Selling on either side of an underlying. Hmm.
OK, so your main risk is a large downside move. Relative to where it was on 6/25, SPY is pretty close, but there was a large move south in between.
I find it a little hard to believe you would have stayed with this position throughout that move, given the size of the drawdown would have been multiplied by the number of sold puts. But whatever; not something I'd do, certainly, but if you can take the excitement and have enough margin to see you through that kind of a move, fine.

Worst case scenario, Spy stays deep in the money till expiration and I end up with SPY ETF, I am okay with that. When I sold those puts on 6/25 I already take into consideration assignment as one of many outcome and owning the stock if put. I already have all these scenarios on paper.

Now obviously if I can predict with certainty and perfect timing I would have sold a different strike put the days when the VIX went much higher, I could have profited more on the put side. But thats how things go. Do your numbers do your scenarios, plans and then take your action.

But you do the best you can using your experience and judgement with the information at hand and take your move accordingly. To each his own.

There is not too much excitement when the novel is written with the different possible endings and you already went through the book a few times.


There is gonna be swings during the life of an option that is gonna be expected, especially with this knee jerk market lots of turbulence in the air Maybe Obama will say something next week or something new happens in europe etc..


Before I enter trades I already have everything worked out, I am willing to be patient for the right times to get in and get out, to sell calls or puts etc.. Patience and planning is key. For me this is a my living, I trade my own capital.