I want to earn some premium , and I am willing to take risks The German Dax 30 is at 11250 , premiun to sell 10300 puts is 71 points .If I sell 2 lots and place a sell stop on futures 1 contract at 10200 , to cover my risk if it plunges.If it plunges ,premium will rise to 300 each.I can sell more , much lower , if it plunges . What other methods of managing risk are there? Just for your info :I have other strategies running simultaenously , these will make a lot of points , if it plunges.
2 months to expiry are sold My other strategy here involves selling futures and doing wide butterfly puts almost 800 points lower , with calendar longs. It makes money on downside.