Getting out when VIX goes above 25 prevents your account from blowing up. You will sustain losses but you won't blow up
Make sure to do the search for "Victor Niederhoffer" BP = Buying Power. How much percentage are you risking per position?
When VIX hits 25 your puts will be so far up your ass in the red and blown up you will choke on them.
Me. I learned a long time ago telling people making easy money to stop making easy money just ain't easy. You come here asking a question, and the most experienced people are giving you an identical answer, and you don't want to listen. The fact they are 10 delta options, in a low vol environment that you are selling, just makes this all the more tragic. So I'll say it once. Stop making easy money. This won't end well.
Looks like you are betting the farm. Option sellers had like $100 or $200 million under its control and managed to bankrupt everyone with just one bad trade. Risk management applies to everyone whether you have $1,000 or $1,000,000 or even $100,000,000. Ignore it at your peril. Selling options works like 90% of the time which is why it is enticing. The 10% of the time if you do not pay attention is what will blow up your account. It just takes one.
This is the only thing I am really scared about. If you could give me any guarantee that there will be no plane hitting the White House, no nuclear war and no biological weapons attack, I am almost ready to retire and trade full time