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
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
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