Managing delta on naked short put
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I don't really see this as a delta issue. If the stock isn't doing what you expected, or it no longer looks like it will do what you expected, you should close or adjust the position.
If you thought your AAPL option was going to expire OTM and you still think it will recover to OTM, hold on to it. If something fundamental about the company has changed, and you are no longer bullish on it, roll down or get out. If the drop was severe enough that you think November isn't enough time for it to recover (i.e. it threw off your timing but not your overall outlook), maybe rolling out a month is the right answer.
TLDR version: It's about the stock, not the option.
If you thought your AAPL option was going to expire OTM and you still think it will recover to OTM, hold on to it. If something fundamental about the company has changed, and you are no longer bullish on it, roll down or get out. If the drop was severe enough that you think November isn't enough time for it to recover (i.e. it threw off your timing but not your overall outlook), maybe rolling out a month is the right answer.
TLDR version: It's about the stock, not the option.
Id try to do something when the gamma factory is working overtime to produce delta against you. 
I had an old IC 129/131/145/147 put on. When DJX dropped below 133 i bought a butterfly shifting it into 127/129/145/147. I spent about $30 / contract for that, eating all the profit and some ($22 credit).
But it feels better now..
Maybe you put a vertical and roll it, or close half the position.
Just dont take a big loss.. :eek:
Good luck to you!
I had an old IC 129/131/145/147 put on. When DJX dropped below 133 i bought a butterfly shifting it into 127/129/145/147. I spent about $30 / contract for that, eating all the profit and some ($22 credit).
But it feels better now..
Maybe you put a vertical and roll it, or close half the position.
Just dont take a big loss.. :eek:
Good luck to you!
Quote from Gustaf:
Id try to do something when the gamma factory is working overtime to produce delta against you.
I had an old IC 129/131/145/147 put on. When DJX dropped below 133 i bought a butterfly shifting it into 127/129/145/147. I spent about $30 / contract for that, eating all the profit and some ($22 credit).
But it feels better now..
This begs the question why adjust then? Just close out and move on!