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So do you think it's always better to have some capital deposited for having a cushion right when assigned ? And also to take profit of the position at like 80/90% before approaching expiration? Thank you again for your explanation swingtrader123. For at example operating with option Amzn how...

And if Amazon goes under 105? The option get assigned but because I havent tried in real I don't know how to move after. I have also read that I can execute one long leg and just covering the difference with cash. But how do I do it exactly on Interactive Broker? I know that I'm a bit confused...

I think I will be in profit of the Credit taken before right? (Being over with profit capped.) What I'm fearing and what I cannot testing is the assignment of an option and I don't know how to move about it and about executing the other leg to cover.

Thank you all for your responses. But if an Option is assigned what can happen is : 1 I have to add money to the account and own the 100 shares 2 add monet to the account, own 100 shares and immediately sell on the open market, hoping to not have a bigger loss. 3. I have also read that I can...

Let's say taht I operated a bull put spread on at example on AMZN. Lets say that amazon at the moment is at 106. Selling at the money one put (30 days long) at 106 and buying at a lower price one call at 105. What can happen if the price goes under 105? Do i get assigned? What does it mean...