Risk of selling todays out of money SPX puts -20%

F

FSU

Don't know the answer to this even though I primarily trade SPX. If you are able to sell puts expiring today that are down 30% and the market closes if we are down 20%, you would think it is a safe trade. I realize there may be margin or clearing firm issues, but you would think its a safe trade.

I don't plan on doing this but curious what others think.
 
It's safe if you sell only enough that you can't get margin called. If you're selling naked puts, then there's some risk that the market moves -19%, then you get margin called. The broker may cover at an unfavorable price before the options have a chance to expire worthless.
 
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