Crap! My Option Position was Assigned…
Today I woke up planning to exit a losing position and come to find my put option was assigned, 10 contracts deep!!! I didn’t panic, after all it’s just money :). I took a deep breath reviewed the damages and called my broker to find out what the next step was. The account this happened in was too small for me to have placed that large of a order. Thankfully my position was a put spread and the side of the order was in the green. When I spoke to my broker they explained that all I had to do was close my positions and transfer in th me difference.
my account is a marking cash account and that means it’s charged a small percentage daily of the balance I held.
well the position did not close so I had to email support and requet that they help me excercise my position.
Take aways:
1. Stick with a small ratio of my cash balance
2. Know the rules before this happens
3. Avoid holding a losing position too close to expiration.
4. Ask a mentor for recommendations
*I recommend you speak with your broker before this happens and you don’t do what I did and get too aggressive in size.