I just got an assignment...HELP

[Tums]

Quote from maae10:

I am a man. I did score big. You're not getting anywhere near my scrotum.

http://bookblog.net/gender/genie.php

 

[maae10]

Quote from Tums:

http://bookblog.net/gender/genie.php

That's right, put my original post into the magic machine and (drum roll) indeed, it is a scrotum.

 

[kinggyppo]

ROTFLMAO!!

 

[JournalWriter]

Quote from demoship:

maae, you can't sell puts that deep ITM, when you sell puts w/ absolutely zero time value, there's a very high chance of assignment.

AND THE MOST IMPORTANT THING IS: When you SELL options, you're SELLING TIME VALUE, if the option has NO time value, why are you selling it? You're giving away an option for free. In your case, you might as well just buy the stock, rather then sell the put.

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.

 

[mde2004]

You newbies do not need to trade options without being able to take a 100% hit on capital in a month.

 

[demoship]

Quote from JournalWriter:

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.

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.