I’ve just stated learning about options this year. I keep it simple so far, with selling ITM cash secured pits. My main motivation is acquiring ETF shares, because I can’t purchase them directly (I live in the EU).
Some of my trades have resulted in early assignment, which I understand can happen because the OCC might randomly match me with another trader on the other side. That’s fine, I want the shares anyway.
I found another opportunity today, with a good premium. It’s deep ITM, but the premium is pretty good, and I guess that I’ll break-even soon. But these shares are for holding, so it’s what I want anyway.
It got me thinking: when I write. CSP, is the premium “always” paid by the same trader who might deliver the shares, if exercised?
Posted by PuzzledArrival