How do OPTION ASSIGNMENTS WORK (How to HANDLE OPTION ASSIGNMENT and OPTION EXERCISE)

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⏰Chapters ⏰
0:00 Intro
1:23 Important option trading information
1:52 Extrinsic values role in option assignments (when is an option likely to be assigned)
5:10 What to do if an option is assigned to you
6:35 What happens when an option is assigned
8:37 Covered call option assignment
9:55 How to avoid a covered call option from being assigned
10:53 BONUS: How to make sure an option is never assigned to you

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🔴 How to TRADE OPTIONS using a SMALL Trading ACCOUNT Video: https://youtu.be/0j6qvqna9aE

🔴 How to ROLL OVER PUT OPTIONS (for a Living) Video: https://youtu.be/8bhzg6eZFhQ

🔴 How to ROLL Over COVERED CALL OPTIONS Video: https://youtu.be/7s4iakIyDNQ

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In this video I’m going to answer the questions:

How do option assignments work, what should you do if you are assigned options, and how do you avoid being assigned options in the first place? I’m going to share with you some of my real-life positions and trades that I’m in right now to help you understand everything you need to know about option assignments! I will also share with you techniques and tools that will help take the stress out of trading options and help you understand how option assignments work, why they are done and how you can avoid them.

What to do if options are assigned to you but you don’t have the money to buy the shares? How do you handle the situation where you’re selling put options but don’t have enough cash to actually buy the stock?

Selling put options is my absolute favorite technique in option trading. But my second favorite technique is that once a stock has been assigned to me, like it was in the case of Realty Income, then I like to sell covered call options against the stock that I own. If you are trading in dividend stocks, like I do, and you decide to keep the stock and maybe sell some covered calls like I’ve done in this example, then you want to keep an eye on the ex-dividend date as well as the extrinsic value of the call option.

At the beginning of this video I told you I was going to share with you a really quick and easy tip you can use to make sure that the options you sell are not assigned to you. Here is how I do that….

#Optionexercise #sellingputoptions #sellingputsforincome

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Видео How do OPTION ASSIGNMENTS WORK (How to HANDLE OPTION ASSIGNMENT and OPTION EXERCISE) канала My Life of Learning