Hello
I'm starting trading options and I have a question related to selling puts to bring income.
The idea is not to own the underlying. Say I sold a weekly 30 strike Put for XYZ stock on Monday that expires on Friday. I have two questions;
1) If XYZ goes below 30 any time before Friday is there risk of assignment? Or the assignment can happen only if XYZ is below 30 on expiration (Friday).
2) I have seen on several tutorials that the author did the roll out for the next expiration but keeping the SAME strike. Is this correct?. How do this avoid the assignment?
Thanks in advance
I'm starting trading options and I have a question related to selling puts to bring income.
The idea is not to own the underlying. Say I sold a weekly 30 strike Put for XYZ stock on Monday that expires on Friday. I have two questions;
1) If XYZ goes below 30 any time before Friday is there risk of assignment? Or the assignment can happen only if XYZ is below 30 on expiration (Friday).
2) I have seen on several tutorials that the author did the roll out for the next expiration but keeping the SAME strike. Is this correct?. How do this avoid the assignment?
Thanks in advance
