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The Option Alpha Podcast

142: EWZ Short Put Option Assignment Case Study

The Option Alpha Podcast

Kirk Du Plessis

Education, Options Trading, Trading, Investing, Stock Market, Business, Finance

4.81.2K Ratings

🗓️ 3 September 2018

⏱️ 32 minutes

🧾️ Download transcript

Summary

Show notes: http://optionalpha.com/show142 Many new options traders worry about what might happen to their portfolio during a short put option assignment scenario. They wonder how they can recover or if they have enough capital to hold onto the stock position. just a few weeks ago we were assigned on one of our short put options in EWZ and were forced to buy stock well above where the stock price was trading at the time. In today's podcast, I want to walk through the entire trade, inclu...

Transcript

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0:00.0

You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make

0:06.3

smarter trades learn how the stock market really works and generate consistent monthly

0:11.2

income. Now your host and head trader at option alpha.com, Kirk depluses.

0:17.0

Hey everyone, this Kirk here again from option alpha.comcom working every single day to make this the most popular investing podcast offered online and in iTunes because it's based on one thing and one thing only and that's helping you guys to make smarter trades.

0:32.6

So again, thank you so much for tuning into today.

0:34.8

On today's show, number 142,

0:37.0

we are going to be going through our EWZ short put option assignment case study.

0:41.9

And the reason I want to go back and review this one

0:43.7

was because of kind of the commentary that I had around the show

0:47.8

last week, show number 141, in the closing bell segment

0:51.4

where we talked about the short or the long stock that we were assigned in GLD.

0:56.8

And I look at GLD as a very similar example to what actually played out before in our EWZ position and so I wanted to kind of

1:06.0

rewind things here a little bit and go back through that short put option assignment case study

1:10.7

and walk through what happened because it was multiple iron butterflies just like what we did with

1:15.5

gLD recently and we got assigned on one of them we ended up doing a lot of movement around these things

1:21.2

but ultimately being patient and consistent

1:24.2

ended up winning out the day and we ended up turning what would have been a

1:27.7

multi-hundred-dollar loser into about a hundred fifty dollar winner so it was a nice

1:31.1

trade and good case study as always if you guys want to see the actual

1:34.8

video version of this when we closed out of the positions and walk through it on the video.

1:39.1

You can get to that by going to the website and the show notes page at option alpha.com slash show 142.

1:45.0

Again, since we record all these videos for pro members, we'll have the videos up

...

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