I just got an assignment...HELP

Discussion in 'Options' started by maae10, Apr 19, 2007.

  1. Tums

    Tums

    #101     Apr 29, 2007
  2. maae10

    maae10

    #102     Apr 29, 2007
  3. ROTFLMAO!!:D :D :D
     
    #103     Apr 29, 2007
  4. All I do (I trade part-time) is sell naked puts and then write covered calls if assigned. I always try to get the time value to make it more profitable, but selling ITM with no time value can have a benefit. Going this route gives you a better % return if the trade works and it takes no money from your account to write it. (Of course you have to have $ available if assigned.)

    Don't go into it easily if you don't know what you are doing. I've been doing it for years and just this year got smacked on a stupid move on CSCO with no time value. Sometimes it works and sometimes it doesn't - like all trades.
     
    #104     May 2, 2007
  5. mde2004

    mde2004

    You newbies do not need to trade options without being able to take a 100% hit on capital in a month.
     
    #105     May 2, 2007
  6. I don't bother writing options if there's an immediate assignment risk.

    I just got assigned today on short 6 may puts on SUNW (bad play). And SUNW isn't THAT deep ITM, only around 18% for a stock that may be fairly volatile.

    I also got assigned on my yhoo 30 puts immediately after they tanked after earnings, even though there was only 1 day to expiration.

    More then 15% ITM with less then a month to go? Don't bother.
     
    #106     May 2, 2007