How did this fund lose so much money from losing money buying puts during Covid crash?

[Windlesham1]

I closed out 28th Feb -ironically my strategy always won when the price increased, up until then. Last month- same deal, but having been emasculated I'm taking baby steps again. I'm a lousy trader

 

[newwurldmn]

I closed out 28th Feb -ironically my strategy always won when the price increased, up until then. Last month- same deal, but having been emasculated I'm taking baby steps again. I'm a lousy trader

you can’t be short vol biased and not take a few lumps.

 

[Windlesham1]

you can’t be short vol biased and not take a few lumps.

Exogenous events are impossible to evaluate, but the only people warning about Covid in my news feed was Remy Martin!

 

[Matt_ORATS]

There are ways to structure crash protection with off setting shorts. I prefer a short put spread against owing two long term puts.
Here's a backtest of that structure: