What to do about potential risk when we trade spx short options

For example credit spread...
First 0dte - credit spread in spx or ndx ---I have seen many times there is a violate move during day trading that even stop loss does not trigger - it can lead to huge losses.

Next - if we choose overnight lets say 5dte - in that case we have overnight risk like geopolitical tension - and even there stop loss wont work if there is violate move

So what is the best solution to manage risk either 0dte or overnight credit spread in index like spx/ndx

 

I think they take loss and sell lower and further out.never fancied it myself as market may be trending.

 

roll

 

Its all about statistics. My living is selling options. I don't do stocks, only indexes.
If you can manage the greeks you can control the risk...
Sell longer dated options when vola is high, sell shorter dated and buy cheap defense when vola is low..

 

What vix level would you consider high vol and low vol?

 

Vix above 20 is high (this year). At the moment i'm selling options with approx. 60 DTE with delta around 1.

 

At the moment we are in an two sided market. So buy puts when we have a big up day (like last friday) to control your delta..

 

Your real stop loss is in your credit spread, the long leg.

Obviously you can have a stop order to cover the position before max loss, but as you realise it's not guaranteed fill, you have gap risk etc

 

Delta around 1??

You are selling DITM??

Not following you

 

Delta 0.01