tastytrade Short Put Assignment Training
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- Опубліковано 25 лип 2024
- optionalpha.com - Earlier this morning, I was assigned multiple short put options in my tastytrade account. One set of short puts was assigned in EEM and the other in FXI. While not completely common, assignments DO and WILL happen if you trade long enough. So, rather than avoid these or freak out when they happen, I wanted to give you an in-depth and full tutorial on how to manage these assignments inside tastytrade and how to reconcile them with your Option Alpha bots/positions. Assignments might seem overly scary but they shouldn't be, and can be easily managed if you take your time.
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Really grateful that you took the time to make this video. Thank you so much for the great content you provide in video and text form.
My pleasure!
Hi Kirk. Can you also make video on How to manage assingment/exercise on Tradier Brokerage?
Thanks for great walkthrough... Kurk.
Glad you enjoyed it!
Funny! I got assigned on EEM put spread today too! Thanks for explaining how to document the closing in OA to keep stats square.
Glad it was helpful! Thanks for commenting!
Thank you for breaking down the steps. Much appreciated. Also funny at the start…..first step run around the room and freak out! 😂
Also since this was a credit spread, the bot knew you were buying to close, which is why you put in .45 and not -0.45. I was thinking you’d type -.45.
haha yep freak out is always the best 1st step ;)
Perfect timing thanks Kirk. Is there any chance that somewhere down the track you could do the same type of video but for Iron Condors? Cheers ian
It's basically the same process, just for the "challenged" side of the iron condor. You'll leave the "unchallenged side" to expire worthless.
This also shows that assignment mgmt can cause one to lose more than max risk. Something to note.
If I would have used a combined covered order, vs. showing the split orders, you could control it more. I used the split orders in this video to show the steps one by one which does put you a bit subject to little differences between order fills.
Can we setup an assignment bot to manage the trades in case of assignment?
I wish! Right no no brokers alert via APIs to assignments and we wish they did! Please tell them to add it to their APIs and then we might have a chance to get it into a bot for management.
Perfect timming... I ammassed a collection this morning too.
Assigned 31 SPY 2023-12-20 475 Puts
Assigned 29 SPY 2023-12-20 474 Puts
Exercised 31 SPY 2023-12-20 473 Puts
Exercised 29 SPY 2023-12-20 472 Puts
Assigned 10 FXI 2023-12-22 24 Puts
Assigned 4 EWZ 2023-12-22 35 Puts
I would have had a stroke if I were assigned that many contracts.
Does this guarantee that we get the same max loss at the time of opening the position?
No, particularly if you split up the exit like I did in the video since it was a step by step example. There is a slight risk the market moves fast between trades and you could lose a little more.
@@OptionAlpha I found something on their channel that explains how to deal with the assignment properly.
Tasty trade is always assigning me. It’s hella annoying.