Reverse Put Assignment Trade
Getting assigned on your options trades is NOT the end of the world.
Last night I was assigned on 2 put options in WBD and realized that my cash balance went negative, so I decided to reverse one of the assignments. Most of the time you wouldn't do this, depending on your strategy you may just sell call options or dump the shares if you don't want to own them. However, resetting the state of your account to pre-assignment is possible and that's what I show in this video.
When assigned on put options:
1. The put option goes away and you keep the premium
2. You buy 100 shares at the strike price
Reverse the assignment:
1. Sell the put option again
2. Sell the shares that you purchased
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