Was turning out to be a very wierd month to say the least. Since the inception, writing wasn't happening only. With every shift in the strikes of short strangle there was premium loss as well as MTM loss. Finally at peace today. In the absence of strong writing for good 3 weeks, the effect was sure to be something like today.
With the full effect of ASM from Nov 30 the option writers will face more difficulty. As ROI is going to decease heavily. In absence of strong writing market may not bounce back from option chain support-resistance as well as earlier. This may open a Pandora box for increased volatility.
And everyone knows volatility favors the bears not the bulls.
Bad effect of ASM on option writers is due, we see the effect of only first phase of ASM today. More volatility to come, tighten your seat belt. Traders will enjoy the roller coaster ride.
But I don't know how investors will handle such unwanted volatility.
Happy trading with increased infused volatility in the system.