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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Thehammer who wrote (2253)	2/25/2021 4:27:40 PM
From: THornsby	1 Recommendation Recommended By Thehammer Read Replies (2) \| Respond to of 2591

Regarding your 1987 experience, I say ditto. Market makers abandoned their posts. Bid/ask spreads on stocks that normally trded in steenths and 1/8ths were several dollars wide. Phone lines were jammed and you couldn't get through to your broker. I had a covered call position that expired ITM and it took over a week for my broker to figure out if I had been assigned. The day before the crash (Friday) was option expiration. I rolled out short puts and just before 4 PM I sold new ones to replace those that were expiring. On Monday, I unofficially owned every one of those stocks. And to really make things fun, shortly thereafter, a margin call. The risk management lessons that I learned after that enabled me not to be dined by 2000 and by 2008, I had learned how to take advantage of the bear. Black Monday was one hell of a day!