I was watching the 3300 Mar put to sell at 48, and 3850/3900 call spread to buy at 12- and only selling a tiny amount of puts, to make this a small debit trade of a few hundred Quid.
The risk is if the market goes off a cliff, and frankly I would not be surprised to see this-the F broke it's 12 month low and then dropped through the next possible support level at 3650.
3600 is next, but ...........
There will be a bounce, and short covering will make it a big one, but right now we have no buyers.
Oddly the Vix hit 50 and then dropped back a bit- fear is not at the kind of level that options traders like to see when the market is behaving so horribly.
Preservation of capital is paramount right now, and when in doubt do nothing -as Price Headley says " I've made more money sitting on my hands than from trading". Getting good at doing nothing is hard, but I am learning.
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