I've held 200 GOOGL shares since May at a 158 cost basis. I've consistently sold 2 call contracts against them for income the last few months. I have -2 210C expiring today, with the stock price currently trading at approximately ~$211.5.
I've never taken assignment before. Could you double-check my thinking here?
Expecting the stock to close between 211.5-212.5, I would have my shares called away at $210 to me, and I would keep the original CC contract premium, which exceeds the expected $2.5 upside of today. So I would lose my stock, but still make money, and be able to buy the shares back at a small profit after hours, or re-enter the contract market by selling 2 puts next week to collect premium on a desired price point for re-entering the position.
Is this the correct way to think about the options? When could I expect the shares to disappear and the cash to appear in this scenario (Schwab account, long holiday weekend ahead)? What would you do in this scenario?
Considering taking assignment today – double check me?
byu/RalReach inoptions
Posted by RalReach