I wanted to share my move on the big drop we had during the last two weeks, printing the low point on Wednesday, I am using XPS. Like many of us, my short puts were way in the money and made me nervous. i rolled the puts as far out and possible down to still collect some premium a during the week prior. By this Wednesday, the paper loss was at or even exceeded the premium i had collected during the last 45 days (the time i started this lot). I decided I don’t want to increase this loss and made it a real loss by buying back the short puts, keeping the leap, basically made a reset. I can not recommend that move, i completely ignored the time component of these leaps. How did you trade during this period?
Options Bistro 