The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and today, we’re going to be answering a question I just got the other day from a member which is – “Can option assignment help turn around a trade?” And I thought this was an interesting question, not one typically that we usually get, but it’s an interesting topic because the thought process here is A, if I have a trade that’s going against me or that’s not working out, can I somehow use the process of assigning the contract or being assigned the contract as a means to an end to then help turn the position around? And the only thing I could think of that might help turn a position around is just simply more time, but time does not require you to be assigned or to go through the assignment process. You could just as easily roll option contracts, even contracts that are challenged or in the money. You can roll those contracts to the next month, keep your capital allocation low because you don’t have to purchase or short sell the stock and you can use tha