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 talk about the number one reason not to be afraid of early assignment when selling options. Now, we briefly touched on this actually in the last daily call podcast, show number 502, but I wanted to dig into it just a little bit more here today because a lot of times, we get people who are afraid to sell options especially when the option contracts go in the money early in the expiration cycle and they think to themselves – “Well, I'm selling options and the option contract went in the money, so that has to mean that an assignment is coming soon and I’m going to be assigned either a long or short stock in this underlying position and I can’t deal with that.” The reality is though, is that you have to pay attention to the extrinsic value of the option contract that you’re selling. Now, I say this because you can definitely look at this and you should pay attention to this, but is it something that y