Discussion in 'Options' started by turkeyneck, Dec 15, 2009.
Is assignment possible when there's still 0.05 time premium left?
I am assuming you want to get stocks assigned right?
Since the only reason to stay short a put with only a nickel of premium left is because you want to be long stock.
I believe his question indicates there is a nickel worth of time premium over parity left in the option and its already in the money. So yes he can be assigned but why buy them back and pay over parity?
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