My amzn & Google naked put sell is In deep red . How to play it on Monday to recover the loss.

ironchef · Feb 28, 2020

zoned_post_meridiem said:
Not to throw fuel on a bad idea, but at what point in this absurd drop are we all going to be tempted to start selling naked puts?

Next week.

NewTraderAdventure · Feb 28, 2020

NewTraderAdventure said:
poopy has a way with words

i hate put sellers
the win a lot , then they blow up
very messy

This was fukking timely , huh

NewTraderAdventure · Feb 28, 2020

PoopyDeek said:
Neither am I, but he's going to be the nom unless Bloomberg parts the Red Sea.

good thing poopy is a paper trader, but he had to be sent to intensive care this week

paper cuts everywhere , even his poopy

NewTraderAdventure · Feb 28, 2020

Scataphagos said:
V. Niederhoffer has made a career like that.

OP is in a pickle. Only good that might come from his pain is others come to understand writing naked puts. (Like trying to pick up dimes in front of a steam roller...)

Writing naked calls, same risk. I'm sure some got nailed in Tesla's upside explosion. And then there was that group in 2018, that wrote a ton naked calls on NatGas just before a massive up-spike. Wiped all of their equity and then some.

Bottom Line... "writing naked options is hazardous".

The only way to avoid the pain of a week like this is to live though a few of them

Newbs, posers, pie in the sky reddit humping millenial scum? No shot

Trade Theory · Feb 28, 2020

Millionaire_Raj said:
Thanks all for your posts . position closed with loss of 12k on margin shortage .
Need to recover . Sheer Greed .

Whenever I take a hit like that, it always makes me feel better to compare how much I lost against how much I would have lost had I held onto the position...

ironchef · Feb 29, 2020

Trade Theory said:
Whenever I take a hit like that, it always makes me feel better to compare how much I lost against how much I would have lost had I held onto the position...
View attachment 220768

If that is your thinking, come March, when those options expire and AMZN,GOOG come back up, you will be kicking yourself.

Best approach is to forget about it and move on to the next trade, which may very well be writing naked AMZN and GOOG come Monday. :finger:

Trade Theory · Feb 29, 2020

ironchef said:
If that is your thinking, come March, when those options expire and AMZN,GOOG come back up, you will be kicking yourself.

Best approach is to forget about it and move on to the next trade, which may very well be writing naked AMZN and GOOG come Monday.

I think the opposite. Anytime I win or lose more money than expected I always sit down and analyze how that happened and focus on the probabilities of replicating that result. It makes me a better trader to focus on how to improve. Although writing naked on amazon and google will be a lot better on Monday with IV jacked through the roof if he chooses to do so.

ironchef · Feb 29, 2020

Trade Theory said:
I think the opposite. Anytime I win or lose more money than expected I always sit down and analyze how that happened and focus on the probabilities of replicating that result. It makes me a better trader to focus on how to improve. Although writing naked on amazon and google will be a lot better on Monday with IV jacked through the roof if he chooses to do so.

Not a problem if that is your way. All I was saying is if you want to analyze your result for lessons learned, wait till the options expire then analyze them in totality.

Happy trading.