How to Get Notified of Early Assignment Risk

Worried about being assigned on your option position? Bots can automatically notify you of early assignment risk if your option is in-the-money.
Kirk Du Plessis
Sep 27, 2021

Selling options involves assignment risk. For a lot of traders, that can be a scary proposition. If you manage a portfolio with many different positions and expiration dates, it can be challenging to track positions that are near-the-money as expiration approaches. Now, the bots have you covered. Monitor automations not only manage your positions, but they can also notify you of assignment risk.

Monitor automations don’t have to end with an action. They can be created specifically to notify you if certain criteria is met so you can be aware of your position’s status. You can use a combination of decision recipes to alert you by referencing days until expiration, the underlying symbol’s price relative to an option’s short strike price, and an option leg’s delta. You could, of course, exit the position with a close position action if any or all statements are true. 

For example, the monitor automation in this tutorial begins with a repeater to pull in data for all open put credit spreads. The first decision recipe checks if the position expires in less than seven days. If the answer is yes, the bot will then check if the underlying symbol’s price is below the position’s short put strike. A final decision recipe is added to check if the short put’s delta is less than -0.75. A notification can then be sent to alert you that the short option is in-the-money and potentially at risk of assignment. (Remember, assignment is completely random and can occur at any time and at any price before expiration).

We know how stressful it can be when options expiration looms. That’s why Option Alpha allows you to create custom notifications in automations so you can be notified automatically of potential situations, like if a position may have early assignment risk. This is another great tool to add to your portfolio, and you can be stress-free knowing the bots are keeping an eye on your positions.

Selling options involves assignment risk. For a lot of traders, that can be a scary proposition. If you manage a portfolio with many different positions and expiration dates, it can be challenging to track positions that are near-the-money as expiration approaches. Now, the bots have you covered. Monitor automations not only manage your positions, but they can also notify you of assignment risk.

Monitor automations don’t have to end with an action. They can be created specifically to notify you if certain criteria is met so you can be aware of your position’s status. You can use a combination of decision recipes to alert you by referencing days until expiration, the underlying symbol’s price relative to an option’s short strike price, and an option leg’s delta. You could, of course, exit the position with a close position action if any or all statements are true. 

For example, the monitor automation in this tutorial begins with a repeater to pull in data for all open put credit spreads. The first decision recipe checks if the position expires in less than seven days. If the answer is yes, the bot will then check if the underlying symbol’s price is below the position’s short put strike. A final decision recipe is added to check if the short put’s delta is less than -0.75. A notification can then be sent to alert you that the short option is in-the-money and potentially at risk of assignment. (Remember, assignment is completely random and can occur at any time and at any price before expiration).

We know how stressful it can be when options expiration looms. That’s why Option Alpha allows you to create custom notifications in automations so you can be notified automatically of potential situations, like if a position may have early assignment risk. This is another great tool to add to your portfolio, and you can be stress-free knowing the bots are keeping an eye on your positions.

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