IWM assignment

[asdfghj7]

I have an account with IB. Assuming the price is at 45 and I want to go long 100 shares of the stock, how deep in the money should I sell a December 2008 put option to increase my chances of getting assigned fast? (I'm aware there's no set formula) If I am assigned, I've been told that a messege will be confirm this in the Portfolio tab of the IB Trader Workstation screen. Does this messege come up during the pit session right after it happens or is it an end of day confirmation messege the way that the transaction email is. Thanks

 

[dagnyt]

Quote from asdfghj7:

I have an account with IB. Assuming the price is at 45 and I want to go long 100 shares of the stock, how deep in the money should I sell a December 2008 put option to increase my chances of getting assigned fast? (I'm aware there's no set formula) If I am assigned, I've been told that a messege will be confirm this in the Portfolio tab of the IB Trader Workstation screen. Does this messege come up during the pit session right after it happens or is it an end of day confirmation messege the way that the transaction email is. Thanks

1) To be assigned as fast as possible, sell the deepest put.

2) Be very careful that you do not sell that put below parity.

3) Question: if you want to be assigned, why not buy stock? It's much easier.

4) You NEVER learn of an assignment "as soon as it happens." ALL assignments occur overnight and you learn of them prior to the opening, the next business day.

5) Again - no same day notification. The put owner exercises. The OCC sends an assignment notice to a random broker. That broker assigns the notice to a random account.

To have the best chance of being assigned, just look for puts with an open interest of zero.

But, I warn you again - do not sell puts below parity. If the put strike is 100, for example, and you can by stock by paying 45, and price for the put is less than 55, you are throwing cash into the garbage.

Mark
http://blog.mdwoptions.com/options_for_rookies/