Why You Shouldn’t Be Afraid of Getting Assigned Stock
In this podcast I'll explain why you shouldn't be afraid of the assignment and exercise process when it comes to trading options. All too often it's just a lack of understanding as to how the process really works.
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Getting assigned long or short shares of stock is nothing to be afraid of and will eventually happen to every investor trading options. The most popular questions we get regarding the assignment process are
- Who are the parties involved?
- How do they select who gets assigned?
- How long do I have to manage my new risk?
I'll answer all of these and so much more in today's show, and by the end you'll finally be empowered with all the information you need to professionally handle assignment. Plus we'll go through two very cool post-earnings trades we made in HAL and MS which still have very high implied volatility even after announcing their earnings.
In Today's Show, You'll Learn About:
- Step-by-step walk through of the assignment and exercise process.
- How the OCC chooses which traders get assigned stock or not.
- What happens if you don't have enough capital to cover the assignment of stock.
- What your broker's "Risk Team" might do in advance for you to manage risk on your behalf.
- Can exercise after hours when the market is closed?
- When more than 80% of option assignments happen during the month.
- Tips to avoid it and manage assignment if (or when) it happens to you.
No-code, fully automated trading for stocks and options.