Yeah OP is quite literally picking up pennies in front of a freight train. Low vol and 10 delta is a nightmare combo. Not even getting enough cash back for a beer after a long day of jumping on and off the train tracks.
If dems win in November, I would think VIX will spike above 25. 35? *shrugs* But it is surely going to go up as we near the election date.
As one premium seller to another. Cut your risk in half to allow for margin expansion. Also, you'd be better off with fewer contracts closer to the money. Your losses grow exponentially with more contracts. You can still do roll and adjust strategy even when closer to the market. Do yourself a favor and get a subscription to Optionnet Explorer to test your strategy. After testing 2013, I swore off naked calls. No amount of adjusting saved the positions in a raging bull market
Serious question from someone who has never traded real money but has been studying for a while. Every so often, this subject about selling naked puts is discussed. The answer is always some version of " it won't end well" or "you will end up broke or bankrupt". If everyone who sells naked puts goes bust, does that mean someone who buys otm puts and holds on will eventually make a fortune? Thanks for your insight.