Originally Posted by
GambleBotsChafedPenis
I should mention about the stock crashing part...
you could/should roll your options down...
this is a VERY VERY simplified example...
lets say you sold a call at 100 and bought stock to cover the delta...as you are watching the stock starts to get bent over and goes to 80...you should be covering (meaning buying back) the 100 call, selling the 95 call, covering the 95 call, selling the 90 call and so on...so you stack your premium up to offset your long stock position going down...