The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. On today’s call, we’re going to talk about what to do when your short leg of a put spread is assigned. First of all, I think a lot of people actually just first freak out. Maybe that might be the first thing that most people do, is they just freak out which is not what you should do. You should not freak out obviously. It's totally manageable. You can work through it. There’s nothing to freak out about. Maybe the first step is – Don’t freak out, take a deep breath, calm down, maybe walk away from the computer or email for a minute and then come back. The reality though is (and we’ve said this before, but it's worth saying again) most of our positions that we trade, the vast majority do not go through assignment on our short strikes. When we go back and track it, it's like 1% or less over time that we actually get assigned and most of that assignment happens closer to expiration. It's totally something that's not likely to happen, although I wil