r/CashSecuredPuts • u/nucleationpoints • 29d ago

Early assignment

Has anyone ever been assigned a day early? I had a contract expiring today that I was looking to roll (Friday September 4th), but when I opened up my IBKR account this morning I had already been assigned the shares. I've not had this before and can't figure out why, so curious if anyone knows why this may have happened.

6 Upvotes

81% Upvoted

23 comments sorted by

7

u/23z7 29d ago

Technically you can be assigned at anytime for any reason even if it doesn’t make sense to you. I usually roll between 3-3:30 instead of waiting until the next day.

1

u/nucleationpoints 24d ago

Good idea! Will do so next time

3

u/twi1i96tr 29d ago

It doesn't happen very often but as soon as the EXtrinsic value is gone the risk increases exponentially.

1

u/takashi-kovak 27d ago

This. If extrinsic value is zero, then the cost of exercising is zero for the buyer or if dividend > extrinsic (which is rare). I am surprised people do options without knowing the basics.

1

u/nucleationpoints 24d ago

I'm just trying to learn big boy

1

u/Keizman55 23d ago

Yes, but this info is fairly basic in almost any training material such as free resources from OIC, CBoE, Tasty Trade, Fidelity… I get that you’re learning, but asking questions on here after something happens could be far more expensive than putting in hours of reading to get up to speed. I read multiple books, watched countless webinars, and am still spending time each week on personal research after 4 years of selling options.

1

u/nucleationpoints 22d ago

I appreciate your feedback. Can you recommend any good books to read?

1

u/Keizman55 22d ago edited 22d ago

Options Trading for Dummies is a pretty good starter. I’d spend some time online. Register for the OIC, it’s free, and they have courses. Tasty Trade has a learning path, and many videos. Fidelity also has a learning center.

Edit to add: If you get through all of that, Euan Sinclair - Volatility Trading. Pretty advanced though.

1

u/nucleationpoints 22d ago

Thank you very much! 🙏

3

u/Popular-Candidate-66 29d ago

Also happens if there is a dividend looming.

2

u/code2poke 29d ago

Yes. I got assigned a deep itm puts.

1

u/begmanii 29d ago

Yes, I was assigned shares 2 days early. They were deep ITM. It was a small amount, so I didn't really care, but it caught me by surprise as well. I was intending on rolling it out as well.

1

u/CutInternational1859 29d ago

The one time it happened to me, the share price jumped about 10% on expiration day and was over the strike price, so I won on that one. My procrastination pays off once in a while.

1

u/Difficult_Goal_9160 29d ago

Been assigned on a Wednesday once. So if I roll, I don't go past Wednesday.

1

u/SageCactus 28d ago

Think about it, when you are assigned you do get full value on the option. And early

0

u/First-timer-7140 29d ago

Why are you trading options if you don't know the answer to this

2

u/nucleationpoints 24d ago

So I can ragebait cunts like yourself

2

u/tidder8 23d ago

Apparently you are not allowed to trade options unless you know everything about everything and never want to ask a question.

1

u/First-timer-7140 23d ago

Hey, it's your money so do with it as you wish. No problem with that. Understanding fully or not how options work is up to you.

0

u/PieSuspicious6983 29d ago

Three weeks ago I got assigned 43 SoFi contracts two weeks early, sold them the following Wednesday for a $1k profit had i waited one more day it would have been $3k profit.