Option Sellers - Experience during Feb/March20 (First full global lockdown)

Hi, to all option selling experts here, how was your experience of holding naked short option positions from feb’20 through to may/june’20. How did you manage your positions in March20 and how good were the premiums for fresh positions.

I was personally out during that time due to health reasons and not as active as I am today.

So to survivors of that black swan event, how did you guys make it? Did you end up making better returns on the contrary due to richest premiums in a decade?

Guys I feel this would be a great discussion topic for current sellers out there to be realistic about risks involved in selling. Please feel free to share


Please share people

Since this is your first post, would suggest doing a quick search to see if the topic in the forum has been discussed earlier.

It would save you time, and you could add to existing conversations. Plus, you’d get a better response.

You’ll quickly see some threads on this:

  1. What happened with options trader in March 2020?
  2. March 23rd, 2020 - Unforgettable Day for Trading and Investing Community



hey man, this is not my first post. Somehow i couldn’t find the links below in normal search. thanks a lot , tc

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BNF Market opening Short Straddles was a treat! :grimacing:

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But did you have any open short option positions leading up to the crash ? Like something opened in Feb

It was a treat but the only problem was the margin was increased arbitrarily. IF you just look at the premiums at that point you will feel it as juicy however increase in margins were like changing goal post once the penalty was kicked.

Haha am sure the premiums were jacked up. But how did you manage your existing posting that were naked (without hedge) . Something you may have put it in Feb for March expiry

Am curious to know how those behaved as I do work a lot with naked positions

Those who got caught with unhedged positions during that time are no longer with us. Only the survivors remain here

How do you mean? One can always square off the naked option when your stop loss hits(which most serious traders do) . Or are you only talking about those who held to expiry? Even rolling the call side would give a natural hedge

Many were unhedged.

And stop losses dont help when you’re short an otm put that just went ctm upon a -5% open