Why Getting Assigned Isn’t A Bad Thing

During their recent episode of the Value Options Letter and Acquirers Podcast, Travis and Tobias discussed Why Getting Assigned Isn’t A Bad Thing. Here’s an excerpt from the episode:

Once again, Aries held above 100, put expired worthless, kept the full premium, $215 profit, 17.8% annualised. And I mean, I would have been happy to own this. It’s funny, Toby, because people think that the only outcome you want is you’re put to expire worthless and you keep the full target profit.

But in the history of me doing this, which is about 20 years now, a lot of the biggest winners come when you actually get exercised and you ride the stock higher and do the wheel process too. So this is another good example that it happened like that, where it expired worthless, but we would have been fine either way in our estimation.

[Tobias] I mean, that’s one of the things I like most about it, that you can pick your entry price. And if you can get a little bit of a discount on just about every entry price, then that’s a great outcome. And as long as you’re getting compensated for the risk you’re taking in the put, then there’s two great outcomes.