Yesterday, the SVXY put we had sold in our ongoing demonstration portfolio was exercised. While this is sort of an inconvenience to contend with, it will give us a learning opportunity. People with little or no options trading experience are often concerned that something awful happens when an option they have sold is exercised. This week’s experience should put their mind at ease.
Every Friday, we will make a trade in this portfolio and tell you about it here. Our goal is to earn an average gain of 3% a week in this portfolio after commissions.
I hope you find this ongoing demonstration to be a simple way to learn a whole lot about trading options.
How to Handle an Option Assignment
Yesterday SVXY fell over $5 a share as the market tanked and options volatility . . .