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Stock assigned to a covered call
Old 02-23-2021, 03:00 PM   #1
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Stock assigned to a covered call

So your out-of-the-money covered call gets assigned. And then the stock dips below your strike price, like the next day.

If you've already made peace with the idea of selling, are you tempted to rebuild your position?

Do you sell some naked puts?

Do you simply repurchase?

Do you blow your farewell kisses?

Ignore this post. I'm just trying to get it out of my system. My plan is to wait for valuation to become "acceptable" again, but past experience reminds me that sometimes that never happens.

Breaking up is hard sometimes.
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Old 02-23-2021, 03:51 PM   #2
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These don't have to be naked puts, they can be cash covered puts since you were paid for the stock at the strike price (plus option premium).

If I was guessing the strike price was really too high, I'd do a cash covered put to get another premium, and possibly buy the stock back at the "correct price".

If I thought the price although lower than the strike price was "correct" , I'd just buy the stock and probably sell another call on it.
Fortune favors the prepared mind. ... Louis Pasteur
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