June 10th, 2025 – AMZN
I am pretty sure I will have two options assigned on my this week. One is a short CALL option at $210, which means I will be “Called” on an option assignment whereby 100 shares are sold at the contract price.
The other assignment is a short PUT contract I setup at $220. I am pretty sure 100 shares will be assigned to me at that price.
I am not concerned about it though, because what I focus on in option trading is the net result to the cash balance of my account. With these two option assignments, there will actually be 4 line items to consider, and in the end, it’s nothing bad, and certainly nothing to be afraid of.
All the stuff in the middle I will likely roll out to other days, it all depends on where the price settles on Friday. The focus of this post is just what to do with the $220PUT and the $210CALL
Here is an explanation of these 4 line items.
- The June 13th call was sold for $275, since I am letting it assign, then this credit is money I keep.
- The -100 stock is because I am allowing the contract to take those shares away at $210, creating another credit to the account of $21,000.
- A few days back, I had anticipated being pressured to sell this block of shares, so I also sold a short PUT above the current price as a bit of a bullish hedge. This credit will also be mine to keep because I plan on letting the contract sell me 100 shares at $220 on Friday.
- The last leg of this set of transactions that will happen is being “assigned” the shares because of the short PUT contract. This will cost $22,000.
In the end, the net difference in cash on hand will be a cost of $131 to basically keep the 100 shares that had a call against them, without having to roll it out over and over again.
It’s Wednesday June 11th, 2pm eastern time right now, and with the AMZN price at $213.58, really anything can happen so there is still time for this to sway in either direction. I will come back to this Thursday and/or Friday to explain how it turned out.
THURSDAY JUNE 12th UPDATE
With a bit of a meltdown on Weds, there may be some doubt that the $210 Call will threaten. If it doesn’t, then I will just roll the entire ball of options forward and continue with the focus on harvesting extrinsic value alone.
FRIDAY JUNE 13th UPDATE
There was some pretty significant macro-news on Thursday evening with Israel attacking Iran. This created a large amount of havoc in the after hours trading. I was sitting in my car outside work waiting for my wife when I just thought I would check the A.H. activity, and I saw the huge drop in absolutely everything. I decided to use this as an entry point to complete the last two segments of the 7 position slinky setup. I bought in at $210.25 and also $207.21. The second trade was actually a bit of a fat fingered mistake. I was trying to buy, but actually made a “Sell” order, and it executed right away. Realizing this I immediately followed it up with a buy order to not only buy those back, but also 100 more. Later I just shuffled it in with the accounting, and cycled a lot of shares out to make room for the 300 new shares bought.
At the end of it all, I just closed and rolled the active contracts for the day to appropriate future dates, and setup for the coming week.
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Called and Assigned
June 10th, 2025 – AMZN I am pretty sure I will have two options assigned on my this week. One is a short CALL option at $210, which means I will be “Called” on an option assignment whereby 100 shares are sold at the contract price. The other assignment is a short PUT contract I …
<a href="https://www.optionslinky.com/called-and-assigned/"