I deleted the post because I realize that I don't know what I'm talking about. But now that you say it is CFD options? That's "I don't know WTF" squared. lol!
CFD options are from unregulated broker. They cannot be exercised by buyer and they will be cash-settled always at expiry.no other difference to normal option.
All hedging would lock in loss. If you want to continue to speculate, do nothing and see if you get a bounce. I'd close it and learn a lesson about how to not get so upside-down.
IMHO, the best way to stop further loss is just to close them out and call it a day. Then, analyze your trade, ask yourself why short naked put when they are at or near all time high and you cannot afford to own the underlying? To succeed in this business, you need to be honest with yourself. I am just a retail and usually keep things simple.
Read the terms of your broker, see if they can come after you if you lose more than what is in your account. If they can't, double down and bet even more. If you lose it all just walk away. Limited liability FTW.
Likelihood of selling continuing on Monday is high unless governments announce more pumping of money into their economies.
It depends how capitalized you are; if you can take some more heat there's a good chance you will see a decent pullback given how bullish this market is long term and can recoup 50% of your losses. Technically, it's not over for you yet but it's a worry because this move south looks to be the start of a decent correction—300 points on the S&P, which is no doubt why you're here asking for help. ...and if you followed the news and economic data, you would've known there was a high probability the manufacturing data was going to be weak. I think I posted a few weeks ago also that this post-Christmas move up will likely see a lot of investors get burned.