dear friend
how much expecting gap down for tomorrow morning. when I take trade nifty was around 8200 my strike is 7600 gap around 6%.
Let's not just talk of tomorrow. Since you've sold AUG Puts, there's two complete months.
The markets have moved significantly up and have stayed here for a while.
VIX is down below 15.
6% down move may not happen right away, but can happen in a week/fortnight.
VIX will spike. Your option premium will spike. And you've sold two months out, so theta decay may not be as rapid as a 30DTE option.
What sort of adjustment plan do you have in place, if market corrects, VIX spikes and underlying threatens to near your strike and go below it?
thanks