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I sold the naked put. The price of underlying went down and broke the support. The situation changed technically from bullish to bearish. The price of underlying is still quite far above the option strike.

Should I buy back the option with loss or sell 100 shares short to cover it?

What to do in the mirror situation with a naked call?

I mean, when the price of underlying goes up and the situation changes from bearish to bullish.

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closed as too broad by Ezy, skoestlmeier, LocalVolatility, Lliane, lehalle Feb 22 at 19:33

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Should I buy back the option with loss or sell 100 shares short to cover it?

A better alternative is to buy a put with lower strike price (which would complete the strategy known as bear spread). That way you would hedge against further fall of that stock. Keep in mind that if you sell short and then the stock goes up, you would incur further losses.

And what to do in the mirror situation with a naked call?

Buy a call with a higher strike price (thereby completing a bull spread).

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I think the answer depends on your view on further risk of gapping down/up. If you think there is, you would either buy back the option or turn the position into a put spread / call spread, as @Inaki says. If however you believe gap events are unlikely, you would delta hedge, as you say. Implied volatilities are likely to have risen (on the back of the recent downmove), and if you believe realized volatility going forward will be lower than current implied, you would just keep delta hedging.

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