I just got an assignment...HELP

M

maae10

I'm a little new to the game and I got an e-mail saying

"BASED ON AN ASSIGNMENT FROM OCC, YOUR ACCOUNT HAS BEEN ALLOCATED THE FOLLOWING ASSIGNMENT ON SHORT OPTION POSITIONS"

I just picked up this position yesterday. Do I need to purchase the stocks myself to cover or will the prop firm do it for me?

I bought puts in the money and the price went up a smidgen, I still get to keep the sale money to offset the shares I need to buy......right? I'm only going to take a small loss.
 
Quote from just21:

They will put the shares in your account automatically.
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Will they credit the account the sale price for those options?



Quote from just21:

Should have sold out of the money if you didn't want them.
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I don't understand? I bought a put in the money because I think the stock is going to move up.
 
Quote from maae10:

Will they credit the account the sale price for those options?





I don't understand? I bought a put in the money because I think the stock is going to move up.
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You seem to be very confused. You didn't BUY a put you SOLD it, otherwise you cannot be assigned nor would a rising stock be beneficial to buying a put.

You sold a put, you got assigned, now you are a proud owner of the stock (purchased at the strike). You keep the premium you sold those puts at. If you want to get flat then you have to sell the shares in the market.
 
Quote from maae10:

I'm a little new to the game.
I just picked up this position yesterday. Do I need to purchase the stocks myself to cover or will the prop firm do it for me?

I sold puts in the money and the price went up a smidgen, I still get to keep the sale money to offset the shares I need to buy......right? I'm only going to take a small loss.
More...
I'm afraid when you sell naked puts you forfeit your right to a small loss. I hope you like the stock.
Of course, as others have pointed out, stop trading before you lose your house/job/family.
db
 
Quote from MTE:

You seem to be very confused. You didn't BUY a put you SOLD it, otherwise you cannot be assigned nor would a rising stock be beneficial to buying a put.

You sold a put, you got assigned, now you are a proud owner of the stock (purchased at the strike). You keep the premium you sold those puts at. If you want to get flat then you have to sell the shares in the market.
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Correct, I sold the put. I apologize for the error.

strike price @ $115
Stock price @ $90
I sold it for $25

Did I break even here?
 
Quote from JimmyJam:

STOP TRADING OPTIONS NOW ... until you actually learn what you are doing.

Jimmy Jam
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I've been buying options on the side for years, successfully. I'm new to the selling side and I'm new to risk-based margin.

Quote from TorontoTrader2:

You were assigned? You life as you know it is OVER. It was nice knowin ya, bud. :p
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Seriously, you're giving me a heart attack here.
 
Quote from maae10:

I'm a little new to the game and I got an e-mail saying

"BASED ON AN ASSIGNMENT FROM OCC, YOUR ACCOUNT HAS BEEN ALLOCATED THE FOLLOWING ASSIGNMENT ON SHORT OPTION POSITIONS"

"According to the OCC statement you sold options to open the trade/position. "

I just picked up this position yesterday. Do I need to purchase the stocks myself to cover or will the prop firm do it for me?

" If your at a prop firm then your supervisor should of been talking to you about this position. They are suppose to monitor the account and this position should of raised a flag with somebody in the office."

I bought puts in the money and the price went up a smidgen,

I still get to keep the sale money......

"If your account was credited money then you sold puts naked. If you had actually bought puts then your account would of been debited the price of the options."

"Options can be a great tool but I would highly recommend that more self education is in order before the next position is taken. Going nake can wipe out an account fairly quickly because of assignments."

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Good luck to you and no your life isn't over, just your account might be.

Bsulli
 
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