Rollover when useful?

[marsman]

I'd recommend hedging your short strike with a long strike further OTM.

Usually yes, but in this case I don't think the underlying will move more than 23% tomorrow on the last day...

 

[TradeCat]

To this day, I rally against writing naked anything and for covered calls and cash secured puts. Trading is so much more relaxing when you minimize unnecessary risk.

 

[ironchef]

marsman,

lindq was right when you are short naked options, either call or put. He was trying to do you a favor warning you to be very careful.

You probably don't remember KRFT (Kraft Foods Group) I sold call options on it, received about $1 when the stock price was around $50 per share. Within a short time it was bought out and the stock jumped to over $80 a share. It was a very expensive lesson for me.

Good luck.

 

[marsman]

Closed the pos by buying back. Made about 2k equalling to about 18% in a week, not bad imo.

 

[Rationalize]

presumably you have a view on volatility