I have been trading Options on the IBKR platform for about 4 years now. I have "evolved" to trading mostly SPY and Short PUTs. I haven't used a Stop in the past - I haven't felt the need until now. The market is pretty volatile and subject to a sudden drop. I live in Australia and trade in the afternoon slot (morning here) for about 2 hours. I can wake up and find SPY has dropped suddenly and most of my positions are in trouble. So my response is to use a Stop. However, I haven't been very successful. I have been getting stopped out early only to find the dip was short-term. I end up losing some - not a good thing. I'm obviously doing something wrong or I shouldn't bother with Stops and just roll my positions as I have done in the past. Your advice is appreciated! Thanks.
That's what volatility does. I don't think you should sell puts on SPY unless you are fine taking assignment. Rolling might work in a calm market, but in a volatile market that we have really never seen before, selling puts naked is too risky IMHO. Good environment for spreads.
if i did anything it would be sells calls with deep pockets and roll it's hard to understand and execute the picking up nickles in front of a steam roller method, but i have seen it personally make billions. if you trade with 10mm have a reserve of 100mm to always be ahead of the margin call.
if its doesn't make sense, seems far to risky and just feels bad it makes gobs of money. mortgage your house to gain a bicycle... why does one do that if they think they will lose?