The battle for power at the end of the day has been played out over and over again in the US stock market! If you go to see Tesla options trading on Friday, you can often experience the excitement and heartbeat! The winner is king and the loser is the villain. It may be interpreted instantaneously, or it may soon be reversed again!
Intrepid investors often buy the last minute, like rushing in before a huge lottery draw.
Here, as an options seller, I will also talk about how to survive the end of the day safely from another dimension! Options sellers try to avoid the end!
1. First, the principle is to avoid short selling end-of-date options as much as possible。 Basically, a slightly longer term fictitious option is sold when the IV is higher. In this way, before the end of the day, the ill-fated options were basically close to waste paper, or caused a certain loss.
Based on onlyThe principle that if you eat fish body, you don't have to be gluttonous about fish tail. Before the end of the day comes, take the initiative to close positions and drop short orders.
Of course, there are certain scrap paper options on the board, such as the 23/12/15 QQQ Put 300. The current price has already returned to zero (0.01), and the purchasing power they occupy should also be very low, so they are too lazy to spend processing fees to close positions.
For short orders that cause losses, you should evaluate for yourself whether to close the position and accept loss, or whether to lie down until the right is exercised (SP takes the goods, SC shorts the original stock). (The options I have sold short have a deep false value, and my positions are not large, so this kind of trouble is relatively rare)
2 Speculation: actively sell at the end of the day,
A If you own shares, you can sell cover...