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. Strat now is to find an early flight to Guatamala .
     
    #71     Feb 24, 2020
    Cuddles and wiesman02 like this.
  2. poopy has a way with words

    i hate put sellers
    the win a lot , then they blow up
    very messy
     
    #72     Feb 24, 2020
    wiesman02 likes this.

  3. This guy is down 30K.
     
    #73     Feb 24, 2020
    Snuskpelle likes this.
  4. Reading this statement...

    Does it indicate you collected $13K in premium, but your positions are down -$7,800?
     
    #74     Feb 24, 2020
  5. 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".
     
    Last edited: Feb 24, 2020
    #75     Feb 24, 2020
  6. traider

    traider

    Fed will bail out everyone no worries.
     
    #76     Feb 24, 2020
  7. Yeah, if you're a frickin' bank that leveraged yourself out the wazoo!
     
    #77     Feb 24, 2020
  8. gmal

    gmal

    If you combine the odds from Prectitit and Betfair, odds of Bernie presidency is not that great.

    https://electionbettingodds.com/

    P (Presidency) for Bernie is 23.5%
    P (Nomination) for Bernie is 52.5%

    P(Pres|Nom) for Bernie = 0.235/0.525 = 44.75%
     
    #78     Feb 24, 2020
  9. Neither am I, but he's going to be the nom unless Bloomberg parts the Red Sea.
     
    #79     Feb 24, 2020
  10. And for OP, this was the perfect storm -- today's dip will be short-lived, but from what I gather, he doesn't have the capital to hold on to his positions long enough for them to bounce back.
     
    #80     Feb 24, 2020