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Protect Major Downside risk?
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I know with Wheel, you're supposed to let the puts get assigned to you, then wheel with covered calls. However, am getting hit by UPS' 20% price drop. No way can I covered call that for the foreseeable future. Rather than accepting major downside risk with the puts, couldn't I sell a put at -.30 Delta, then buy a put at -.10 Delta just to protect in the event the price completely drops out? Would reduce profits, but at least always keep my positions in the game? Or do you all just close your put at a certain point rather than be assigned?

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1 year ago