EVNow
Well-Known Member
What was the expiration date?
I sell weeklies (ofcourse monthlies/quarterlies become weeklies near expiration).Interesting. I know we’ve gone over these types of assignments before, but I just thought of a variable that hasn’t been discussed: weeklies vs monthlies or quarterlies. I would posit that dATM weeklies have a higher probability of assignment vs quarterlies. Traders do weeklies while hedgers or investors do quarterlies. I was $200 ATM in June 2021 (almost $300 at one point), and was never assigned early. Food for thought.
From whatever assignments I've had - usually assignments happen when SP is ~200 below strike (or about 20%) - but it doesn't always happen. This time I saw some assignments in my account on Friday. So, I guess someone requested those on Thursday, when SP hit a low of 821 ... ? Rest of the puts I didn't roll and let them be assigned.
I actually don't care ... if I'm under water and rolling, I've already accepted that to come out of loss, SP needs to come up.
ps : When I roll, if the SP is close to strike, ofcourse I can roll down, which would be beneficial (in case of future assignment). But once SP is 100+ below strike, usually I can't roll down. I just roll at the same strike and get $2 or $3 premium. Sometimes I've to roll 2 weeks at a time to make any premium. Like now - I've to sell 5/13 calls.
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