Options systems

For those here who know about options systems: What happened to Compounding Income Stream, is it likely to also happen to YZ Income Fund sometime in the future? I guess both sell naked options?

Naked option writing as a strategy as such usually suffer with this kind of situation when a breakout happen in underlying and you are left with a large floating loss. More so in equities (non continuous markets) as unusual news based gap up/down may be seen in individual stocks. Its slightly less volatile with a broader index but too volatile with single stock underlyings. I do not trade US equities/options but do so for indian exchange so have a feel of it.

Well, I think the odds of the VIX gapping up or down massively at some point is extremely high. In fact, it’s just a matter of time before that happens.

yes. possibility does exist as market has been struggling in quite a range for some time.