Short Puts Assigned? Don't Make This Mistake

Options trading for beginners: you wake up assigned, your buying power is all out of whack, and you freak out. Dr. Jim Schultz, Mike Butler, and Jermal Chandler walk through exactly what to do next. Close the trade and free up capital, hold the shares for clean delta, or run the wheel with covered calls. Plus the golden rule: never sell a call below your cost basis or a put above it, because you lock in a loss. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 What do you do after you get assigned? 00:24 Jermal got assigned early and picked up $200 free 01:28 Why early assignment gives up extrinsic value 02:14 Keep 15 to 20 cents of extrinsic to avoid assignment 02:56 Option one: close the trade and free the buying power 03:57 Option two: hold the shares for clean delta 05:27 When a spread's short leg is assigned, hold it 06:35 Option three: run the wheel with covered calls 07:31 Always be mindful of your breakeven point 08:57 Nvidia and Starbucks: which put or call to sell 09:25 Half the time, holding clean delta is the best move 10:20 Never sell below your basis and lock in a loss 11:07 Set alerts if you sell below breakeven #tastylive #optionsassignment #thewheel #coveredcall #optionstrading #jimschultz #optionsforbeginners #costbasis #premiumselling #tastytrade tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.