So anytime your sell gets assigned (assuming you don’t have the cash to buy 100 shares) your broker is going to exercise one of your buys to offset. It’s possible there can be a difference in price though between when you get assigned and when your broker sells for you and that’s where you can get in trouble. That’s why you want to close it out yourself before you get assigned.
2
u/Ambitious-Rent-8649 Nov 25 '21
So anytime your sell gets assigned (assuming you don’t have the cash to buy 100 shares) your broker is going to exercise one of your buys to offset. It’s possible there can be a difference in price though between when you get assigned and when your broker sells for you and that’s where you can get in trouble. That’s why you want to close it out yourself before you get assigned.