Worried About Options Assignment? Here's Why You Shouldn't Be

A common fear among new options traders is the risk of assignment. Many worry about being forced to buy or sell shares before they are ready. This fear is understandable, especially without a clear strategy in place.

In my approach, we focus on high-probability trades that are designed to generate cash flow through premium collection. Assignment risk is always possible, but in our system, it occurs in about 1% of trades based on a large sample size.

We even trade during earnings and other events. However, we use caution and follow a specific strategy to reduce the likelihood of assignment. This includes choosing trades with favorable probabilities and actively managing positions.

Here is how we manage assignment risk:

• We select trades with a high chance of expiring worthless

• We monitor market conditions and adjust as needed

• We avoid letting positions sit through expiration without a plan

In the rare case that assignment does happen, we are prepared. Our system includes position sizing and capital planning that allows us to hold shares when necessary. More importantly, we use that capital to continue generating cash flow even while managing assigned positions.

For those who are worried about assignment, I offer one-on-one support. I will walk you through the risks, the advantages, and how to use a structured plan that puts you in control.

You do not need to fear options when you have a strategy that is built for consistency and backed by experience.