My Short Put Option Was Assigned – What Do I Do?



https://optionalpha.com – If you plan on trading options, plan on having to manage short put option assignments at some point …

12 thoughts on “My Short Put Option Was Assigned – What Do I Do?”

  1. Very useful video thanks Kirk. I’m about to start live trading…can you help me understand how this works on the broker side. When I’m forced to buy shares, I can go and sell them right away as you have done here but what if I don’t have sufficient funds to purchase them in the first place? Does the broker loan that amount or how does it work? Thanks!

  2. Assignments happen & you can’t control it? (T/F?) So letting the contract expire worthless/out of the money risks being assigned? Can you limit your risk by closing a loosing position early? Seems the assignment risk goes up if the loss is over $300. So, is a better practice to close a looser sooner. Perhaps under the $200 mark?

  3. Thank you so much for this video. I got assigned for the first time a few days ago, also on XLU and also 14DTE away, which was a surprise. I panicked and didn’t really know what to do. This video would have been super useful if I would have watched it last week ?

    Now I know what to do.

  4. Any reason why you didn't sell a short dated ATM or ITM covered call to grab some added premium from the assigned shares?

  5. Just did this yesterday on an Iron Condor but tried to "buy to close" back my call side for $0.01. Couldn't get it closed out. So likely I'll also have to let it go worthless.

  6. Kirk… You sold back the shares and the law… Did I miss something or did you not continue monitoring the call side?

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