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

Discussion in 'Options' started by Millionaire_Raj, Feb 21, 2020.

  1. They'll come after him like any other lender would if he defaulted on a loan. Fortunately there's no collateral so they can't take his house or his wife but they will fuck his credit. Luckily margin defaults can be erased through bankruptcy.
     
    #31     Feb 22, 2020
  2. ironchef

    ironchef

    Singaporeans are rich, not like us Americans (remember: Crazy Rich Asians, and @Millionaire_Raj), they don't have to mortgage their house like us. :(
     
    #32     Feb 22, 2020
    IAS_LLC likes this.
  3. ironchef

    ironchef

    That is what I called a plan.
     
    #33     Feb 22, 2020
  4. IAS_LLC

    IAS_LLC


    For me personally, i sometimes sell far OTM naked puts when I'm okay/want-to get assigned at the strike price. I guess this isn't technically naked tho...as they're cash covered.
     
    #34     Feb 22, 2020
  5. Yea I sell cash secured puts as well but your goal is to be long the stock, OP said he doesn't have the funds to let the contracts exercise.
     
    #35     Feb 22, 2020
  6. JamesJ

    JamesJ

    Ig Trading (CFD) prices the Dow Jones down another 70 pt right now (they offer weekend trading but with large spread especially at times of high volatility and the only allow market order).
    Probably based on corona cases in Korea and deaths in italy, as well as imf growth outlook down revision.
    As a matter of fact cnbc.com frontpage is full of negative news right now.

    I agree with another post here, that we could easily go down another leg on Monday unless there's some kind of stimulus news and/or better corona news.

    Edit: Selling naked options, especially Puts has to fail big at some point. I hope you made enough small wins for this fail. I would take the Hit an walk away. There are plenty more trading days and opportunities to come...

    Maybe read about the volaggedon (Feb 18), especially XIV. It's another good example of a strategy that looks too good to be True (just as your selling naked Puts in the mother of all Bull markets).
     
    Last edited: Feb 22, 2020
    #36     Feb 22, 2020
  7. IAS_LLC

    IAS_LLC

    Yes, but to be more specific, my goal is to be long heavily discounted stock OR collect premium when IV is out of whack with reality.
     
    #37     Feb 22, 2020
    Trade Theory likes this.
  8. ajacobson

    ajacobson

    Manage a position begin with one question - what do I forecast will happen on Monday.
    If I have no view than I have no trade to make and I would consider closing - with a view(which may end up being incorrect) and capital I can look at strategies like rolling down, rolling out in time, rolling down and out. Doing something in the calls, but I need a sense of what my view of the marketplace is. Establish your view for the next few days. BTW a repair strategy may not get you whole in its first cycle. You can Martingale a position down/out for as long as your stomach and capital allow.
     
    #38     Feb 22, 2020
  9. notagain

    notagain

    take the loss
    Screen Shot 2020-02-22 at 6.47.35 PM.png
     
    #39     Feb 22, 2020
  10. Honestly, in your situation, I'd put a really tight stop-loss on it and just don't look. Best-case, you get a bounce on Monday and can move your stop-loss up; worst/most realistic case, it closes very quick. If you don't want to risk anything more (i.e., the difference between your current position and the stop-loss), close the positions when the market opens.

    My concern wouldn't be making back some of the position, it'd be not losing more. It's quite possible that these positions will be even deeper red by the time you can submit an order to close. Sorry :( ... options are risky, there's no two ways about it.
     
    #40     Feb 23, 2020