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I Was Assigned On My Put Option. What to do if you are assigned on your short put option!

Tactical Options Trading 31 views

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That’s why I don’t do spreads on stocks I can’t afford to be assigned on
Comment from : @lin-joglobal769

Thank you so much! One of the best if not the best explanation in this topic…
Comment from : @hidehikogracie

I still learning about option strategies and not yet try a vertical credit put spread I always thought the broker will automatically exercise the long put to offset the assigned short put So, it was all my misunderstanding all along brJust to make sure I understand the example after the covered stock, I am still down by $102 What happened to the initial credit of $200 received from the short put? Did the $200 already being counted in the covered stock sales?
Comment from : @Shin-No-Usagi

You state to get out of the trade after the short leg has been assigned to sell a "covered stock" What exactly are you referring to, ie, call or put?
Comment from : @Alphahydro

Don't write puts on a stock you don't want to own
Comment from : @EquityCall

Excellent video!!! Congratulations
Comment from : @paulofreitasgomes6389

Very well explained Subbed
Comment from : @SkylaneCaptain

Thank you sir I was assigned 100 of spy $54,000
Comment from : @WealthWiseGuru-s4y

First time here… thanks for explaining this is such a digestible way!!
Comment from : @ChadGPT-10

can you do the covered stock order on Robinhood? I just got early assignment on my Amazon put credit spread on the short for $190 and the buy long put was for $185 Expiration date was on August 16 I am on Robinhood This is the first time it happened to me! Amazon stock is currently $167 What is the best option at this point in time? I have a deficit of 5K, which I can get if I sell some other shares of stock
Comment from : @electricblue73

thanks for this helpful vid! Q about the extrinsic value - i see there are positive and negative values when my bull put spread shows a negative EV in the long put strike price, does it mean it's better just to exercise it than to sell a cover trade as you advised?
Comment from : @mz_Zephyr

Thanks
Comment from : @vikasgupta1828

In the short call case the out would be to purchase the shares with the cash received or is that how it would work, if lets say the long call is still out of the money? Let's assume there is not enough cash or margin in the account already?
Comment from : @chrisguli2865

Love your video and have subscribed to your channel I am a fairly new option trader who primarily sells put credit spreads However in the past couple of months I have been absolutely slaughtered in these trades with assignments causing me to lose approximately 1/2 of my portfolio value! Need help here! What techniques can I do to get this assignment problem under control and quit getting assigned so much? Any help will be greatly appreciated! Thanks
Comment from : @jamesdiiorio4702

Excellent video Subscribed so you can make me smarterer
Comment from : @aaron6806

yes so your saying instead u can do bothclose out your protective put and use your 100 shares on margins to collect all the extrinsic value before everything expires? instead of just closing out and losing the rest of the gains still in the option ?
Comment from : @OneKeyRep

Thanks for this video I'm learning options and wanted to see what the screens look like when you are assigned as well as what to do about it This answered it for me!
Comment from : @jrichardson2308

Is it possible to sell put and stock in one order at the Robinhood ?
Comment from : @alexshelt9776

I'm a new option trader I mainly sell put spread I've been always worried about getting assigned one of the legs That's why I don't want to trade an expensive stock just in case I get assigned but you explained it well I will watch your other videos as you mentioned Thanks!
Comment from : @mt-fy8qf

Has anyone been assigned at high volitility market over 21 days out on the SPY? Asking for a friend :)
Comment from : @ms8172

Great post Thanks!
Comment from : @ModMarcus

Can you do an opposite order on aCall credit spread if I get exercised and don’t have enough money for the stock assignment??
Comment from : @dannygraham3590

Great video, great explanation, thanks!
Comment from : @derekthetrader2929

This is why I only buy puts and not sell themnever have to worry about assignment
Comment from : @eccentricsmithy2746

Thank you so much for this video! No one talks about what happens if you are 'caught' in the middle
Comment from : @chuckconners6520

Thank you so much Learnt so much!
Comment from : @sjaw100

sooooo helpful and totally helps me relax about assignment thanks so much!
Comment from : @patrickrundle3532

I have been assigned a put credit spread what type of trades will me pay it off?
Comment from : @b121373

hello Sir - I got a vertical spread for AAPL expiring 12/29 - 5 1925 Long Puts and 5 195 Short Puts The stock closed right around 1925 The 195 Short Puts got assigned Would you please be able to guide me as to what are my options?
Comment from : @ajays108

A great video, but maybe I found it too late I have one ITM which expire tomorrow (Dec 29) It's UPS, which is at $15687 right now I have the long at 155 and the short at 1575 So, I'm not sure how to act with this one today when the market opens It is still running Should I close both legs now or what would be the best approach here?
Comment from : @staffan_ofwerman

8:10
Comment from : @MrSanbonsakura

This is gold Being a newbie i was fretting over margin calls and hesitant in hooting for credit spreads
Comment from : @ohsumactiontv9110

If you are assigned shares from a put spread and still hold the long put, will your brokerage automatically close out your shares if you try to sell your long puts? I got assigned deep itm on both legs and got assigned shares I was wondering whether my shares will automatically close out if I sell my long put since I do not have capital to actually purchase the shares
Comment from : @Goldenj360

hello coach , i just learned that SPX ( cash settled ) is acting like European style and it can get only get assigned at expiration date not earlier is this TRUE ? the reason i am asking this because currently i am trading on SPY which is American style can you clarify this for me please ?
Comment from : @ampiciline

Calmingwell done communication on a frightening "thing" Much calmer now
Comment from : @charlessiess2534

Can we not just sell the shares and long put separately?
Comment from : @mrrandom8447

Very clear and easy to understand Thank you so much!!!
Comment from : @rachelsmith5157

Hello dear coach ,I am a beginner in option I just got an approval for " vertical PUT credit spread" in fidelity platform I am trying to do " PUT credit spread" on SPY ETF As you know very well , SPY is around 450 $ and I need 45 000 $ capital which i don't have I was very scared to do PUT CREDIT SPREAD mainly how to REVERES the trade, if assigned ????? This IS THE ONLY video that has addressed my concerned very clearly NOW , I have couple of questions to ask if you don't mind ( please remember I am a beginner ) 1) when you are saying in this video do not " exercise option " do you mean " DO NOT ( STC) on protective put option ( 335 ) ? is "CLOSING the option " and " EXCERCISING the option" having the same meaning ??? Second question : Do you know if fidelity platform offers " COVER STOCK ORDER " feature to REVERS the PUT CREDIT SPREAD trade ? My concern is , if I would get assigned and I can NOT figure out how to do " COVER STOCK ORDER " in fidility platform and If I can not get a hold on an advisor in fidelity In that case how would I would get out of the situation, without doing " covered STOCK order what would be my second alternative to reverse my assigned trade , if I am willing to lose my EXTRINSIC VALUE on my protective PUT order ? Can I separately ( STC ) the assigned 100 LONG stocks AND br ( STC ) my " long leg put ( protective put )" in a separate action AND REVERS THE TRADE ????Third question : in regard to mechanics of Selling " COVER STOCK ORDER " MEAING : ( STC) LONG STOCKS and ( STC ) the protective PUT at the same time , in this video example ,we are basically ( STC ) a 100 LONG assigned stocks share at WHAT price ??? are we selling it at original put price 340 $ or 335 or at Market price after assignment ??? thank you so much
Comment from : @ampiciline

Good stuff
Comment from : @thepixalking6589

but can you exercise that 335 put if the stock is not in the money? can't you only exercise an option only when it's in the money?
Comment from : @AndreiS-f8d

Awesome video, many thanks!
Comment from : @kmathis1000

Very clear video, straight to the point, thank you !
Comment from : @rhornak2381

STOP You must watch this assigned / exercised clip It is the very best explantion IN DETAIL that I have ever seen It is easy to get in option trades but what happens when things go to pot Please I beg of you to watch this and the other assignment video that he has done
Comment from : @peterlarsen3021

I'm confused now
Comment from : @charlesstevenson9205

What is the chance of getting assigned if it never goes in ITM?
Comment from : @nostalgic-w3f

This is an EXCELLENT IDEA! Thank you!
Comment from : @iwtshm6642

Excuse me I was assigned my short put options at my break even price? Not my strike price Why is that? Can I tell the broker to fix that?
Comment from : @PokerDummyface1024

After 7 minutes he finally gets to the subject of the video
Comment from : @robertvandenberg6151

I'm still beginner learning about option trading, margin accounts and I would probably start with some small account like $3k, so for me going short still seems scary However as far as I understand, if I would choose any strategy that has defined maximum loss, like put credit spread, there's no possibility to actually exceed this maximum loss? In scenario from this video, let's say that I panic after getting my short assigned, do nothing and due to some news, stock price would drop to $300 in aftermarket Is there any possibility that broker (in my case it would be probably IBKR) would not exercise my long put? Is there any possibility that my long put would be not exercised and these 100 stocks would be sold at $300 by broker? It's scary vision, because it would mean that I would lose more than I have in my account, but as I understand that's literally impossible and I have nothing to worry about? There's no way to lose more than $300 with 1 contract ($3 max loss * 100 stocks) in such scenario, because broker will automatically prevent such possibility?
Comment from : @adiq94

Great stuff thank you! Liked! May I suggest a pop filter?
Comment from : @randyuallen

More please !!
Comment from : @giuseppecapilli1954

With this bear market what are you trading with iron condors maybe a vid on this thx
Comment from : @PERDU888

Another good vid glad to see that your back with new vids
Comment from : @PERDU888

Great explanation I am a big fan of you:) Can you please make a video of the 'Wheel Strategy ' ?
Comment from : @Mrking-so8jc

This just happened to me yesterday I was very far ITM and a couple pennies of extrinsic in my long, so I did exercise Very helpful video
Comment from : @jenson6

Great explanation of what to do when assigned Do you have a website? Also was not able to receive the ebook after my email was confirmed for some reason Thanks
Comment from : @darrensteves

Nice video
Comment from : @DarthDividend

Finally!
Comment from : @ahmad1221

Just started watching your videos recently and glad to see a new upload! This is something I've been concerned about with starting to get into spreads
Comment from : @corygrewohl8180