The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online
#504 - How To Avoid Option Assignment
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:03:12
- More information
Informações:
Synopsis
Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to talk about how to avoid option assignment. I’m going to let you in on a little secret. There’s actually only two ways to avoid option assignment. The first way seems pretty logical and easy and that's to be a long call option buyer or a long put option buyer. When you’re an option buyer, you don't have the possibility of being assigned on those contracts because it's up to you to decide if you want to exercise your option contract or not. The other way to avoid option assignment is simply just not trade. And I know this seems intuitive and might sound a little bit crazy, but the reality is if you don't want to ever deal with assignment or being exercised on a contract, then just simply don't trade option contracts. Option assignment and options exercise is part of this business. It is going to happen at some point to you if you are an option seller and you have to learn how to deal with it. Now, a