BTW, I've never taken assignment on AMD Puts. I don't expect to now either but nothing is certain until the position is closed out.
Yeah, well, when the time to expiration gets down to a couple of weeks and the option starts moving well into the money, ya better get rolling them out, because the time premium can go to zero while you're snoozing and for the sake of liquidity the current owner of the puts you wrote might decide to exercise rather than sell them. Thats the part I never particularly liked about writing options: the current holder can decide when your time is up.
BTW, when a holder of options decides to exercise early, and the MM or exchange assigns someone, how "fair" is the choice? Is it random, and do they assign 100% of what you wrote if you are up next. For example, suppose you wrote 100 options, and someone holding 500 decides to exercise early, and you are selected for assignment. Will they take the first 100 out of your hide, or will they say only give you 10 and split the remaining 490 amongst a bunch of others who wrote the same option, so that each writer has say only about their fraction of the total outstanding vs the current fraction being assigned? |
