Or what about those guys selling covered calls as a hedge.. or for "income"? How are they doing this month?
Yes, those funds do a "reset" just about every 2-3 years. Of course, that never stops the stampede into these funds that always think "this time is different" or the "Fed will never allow the equity markets to drop". Time always has a way of creating such unfounded complacency.
I run a vol arb commodity pool which is short vola. I'm (very slightly) up for the month. Not all option sellers are the same.
With the early part of this year being fairly stagnant, I did a lot of backtesting on Iron Condors. I too just couldn't pull that trigger and I'm glad I just waited for the beeg show to resume
If they were smart they got out of the market last week. I don't do Iron Condors but I did have one iron butterfly on IBM that I took a 3% loss on and double calendar positions on SPX and MCD that I exited last week. I had a bearish directional bias already in place on them but was nervous with the current market so I got out with 6% and 9.4% gain on them. Luckily I left my long puts in place on the SPX and covered them at the close today. So now I am flat. All the percentages were ROI not my entire account balance.