How do traders with naked calls in Nvdia sleep tonight. How do trader with naked puts in Snowflakes sleep tonight.?
Take sleeping pills to go through the agonising sleep. Then tomorrow add more naked call and naked put positions.
Same as any other position. Don't be stupid about it when you put it on. Plan the trade and trade the plan. Being short NVDA calls naked into earnings in any size relative to your overall port would count as stupid.
One thing i learned from forex is to not be emotional and don't let emotion to take your control. we need to stay stable.
Adequate capital so you can adjust. Spreads instead of outright naked, but risk adjusted performance needs to be considered vs. not sleeping. Keep in mind that multiple listed options are fairly efficient - so the returns reflect the risk. Don't assume the horrible event won't happen.