Selling a PUT option query

[MAKTRADER6970]

Hi

I was wondering if  someone could help, If I sell  a put option how high can the price get i.e how much can I lose?

Plus how can i protect my position from GAPing against my position e.g weekends, overnight etc?

 

Thanking you in advance  and look forward to your response

[Martino115]

If you sell a Put your potential loss is infinite ( or whatever you have in your account) , maybe best to buy a put in the current volatilty or cover it with a straddle -https://www.investopedia.com/terms/b/bear-straddle.asp

 

[MAKTRADER6970]

Thank you Martino115 - much appreciated.

If I wanted to rollover the option , how would i do that? Do I just buy the original option (ie close it for loss) and sell another PUT to cover at least the cost of the rollover?

 

Thanks

[gezmond]

yes, buy back put and if you sell another further out in time , you should be able to cover your loss and have a small credit