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 welcome back to the daily call. Today, we’re going to answer the question – “How long should you hold stock after put option assignment?” This question comes in from our community and somebody asked – “When you’re put a stock, how long do you hold onto it and write calls against it? It seems that keeping the stock and writing calls against it is seriously reducing your return on capital compared to just eating the loss and selling more iron butterflies or iron condors.” I think this answer is a two-part answer. The first part of this answer really comes in the form of asking yourself a question which is – “Do you have enough capital to hold the stock after assignment?” Many times, if we’re selling say a spread or a single short put option, we want to make sure that we have enough capital on our account to hold the stock should we be assigned. Now, this isn’t necessarily a requirement because you can easily reverse the trade with your broker even if y