I was assigned on Nov 28th 680 puts. Sold the stock pre market and closed the LEAPS when the market opened. This is my second assignment already with SPY in this account which is annoying. Had 10 of these so resetting to 1 SPX in that account or possibly using XSP.

Closed SPY Jan 2028 680/680/720
Sold assigned stock @ 655.75 (basis 673.55)

Gain on LEAPS: 14470
Loss on stock: 17837

Net loss: 3367 on a 10 lot

Thoughts:

Remember, the LEAPS aren’t full 100 deltas so they won’t make up for all losses on a big selloff since the daily put sales get to full delta quicker since they are closer to expiration. That’s a main reason for leaving a few of them uncovered…maybe sell 8 against 10.

Since I hadn’t been in this long enough to really accumulate a lot of premium and was assigned stock twice the trade was sitting at a loss. You make the big bucks being in these long term. When I reset I’ll roll this loss into the basis of the new position.

NOTE:

Issues with Fidelity this morning. I did find out that you can get free option trades for the next year if you switch over to their new platform called Fidelity Trader Plus. Seems like it’s going to be a lot better and stable.