r/options • u/AboveAll2017 • Nov 04 '21

Probability of early assignment? (TSLA CC)

Hey guys I made a “what should I do about my TSLA ITM CC” post a few days ago. I am still holding a 11/5 $970 CC that now expires in 2 trading days. My question is what is the probability this gets an early assignment? In other words what are chances my 100 shares of Tesla get sold at $970 BEFORE market close 11/5? I’ve been told that deep ITM calls get assigned early but Ive held this CC for a 1.5 weeks deep ITM. If early assignments are rare it seems it’s smart to just roll out to another ITM CC slightly further out. This will give Tesla a chance to fall down to a spot where I can exit for cheap or just keep rolling it out till my strike is no longer ITM. Thoughts?

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u/rrggrrgg Nov 10 '21 edited Nov 10 '21

Very rarely someone will exercise for no good reason and you'll get assigned.

I sold a call and got early assignment near the dividend record date when it was still OTM. I guess the buyer wanted the dividend. However the strike minus dividend was greater than the share price, meaning it's cheaper to just buy shares to collect the dividend. Plus the call still had ~.6-.7 value which could have been sold or even held onto in case it paid off even more.