Selling naked put

T

Tal priel

Hi,
I'm a rookie in the options trading world , i'm trying to find info about selling naked put strategy.

Where can i get stats on how often does a put get assigned before
expiration date?
also info about getting assigned by distance between the strike price and the in the money price of the stock

Thanks in advance,
TAL
 
Tal priel said:
Where can i get stats on how often does a put get assigned before
expiration date?
More...


There are no such stats because no one else knows how many times you or I get assigned. There is a general number of 7% of options being assigned but it doesn’t mean much, especially as most assignments/exercises happen only when it makes sense, and that’s not often, usually very near expiration, or on hard to borrow stocks.


Tal priel said:
info about getting assigned by distance between the strike price and the in the money price of the stock
More...

Such info isn’t possible because it wouldn’t make sense.
Exercises/assignments on puts may make sense only when the put strike minus put price is about the same as the underlying’s/stock price. Otherwise the person exercising their option (assigning it to you) would lose money.
 
Tal priel said:
Hi,
I'm a rookie in the options trading world , i'm trying to find info about selling naked put strategy.

Where can i get stats on how often does a put get assigned before
expiration date?
also info about getting assigned by distance between the strike price and the in the money price of the stock

Thanks in advance,
TAL
More...


Stats are worthless.

0.01 ITM, but there are exceptions in very low OI series.
 
guru said:
There are no such stats because no one else knows how many times you or I get assigned. There is a general number of 7% of options being assigned but it doesn’t mean much, especially as most assignments/exercises happen only when it makes sense, and that’s not often, usually very near expiration, or on hard to borrow stocks.
More...

From my reading so far it's looks like is not make sense
for the other side of the trade (the put buyer) to excerice becuase of time value.
So what can make the put buyer to exercise before a time frame of 2-3 days prior to experaition?
 
Tal priel said:
Hi,
I'm a rookie in the options trading world , i'm trying to find info about selling naked put strategy.

Where can i get stats on how often does a put get assigned before
expiration date?
also info about getting assigned by distance between the strike price and the in the money price of the stock

Thanks in advance,
TAL
More...
If you are truly a rookie, don't sell naked puts.
 
Tal priel said:
From my reading so far it's looks like is not make sense
for the other side of the trade (the put buyer) to excerice becuase of time value.
So what can make the put buyer to exercise before a time frame of 2-3 days prior to experaition?
More...


Nothing. It’s rare. May happen under special circumstances like a special dividend or high interest rate for borrowing specific stock during short squeezes. Though that usually applies to selling calls.
And generally even if you do get assigned, it doesn’t need to be bad. The next day you could just close that position, with small profit or small loss, depending how the price moves overnight.
 
Tal priel said:
From my reading so far it's looks like is not make sense
for the other side of the trade (the put buyer) to excerice becuase of time value.
So what can make the put buyer to exercise before a time frame of 2-3 days prior to experaition?
More...
dividend
 
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