Expiration Friday is here, so Tony and Katie take a look at her positions that hold ITM options. Looking at her short and long positions in QQQ and SPY, Katie can determine her directional risk and how many short or long shares she would be assigned upon expiration. In the end, the team determines it is best to save themselves the exercise/assignment fees and close the In The Money positions for losses, and either look to put on Debit Spreads in December or wait for volatility to expand once more. Then, the duo discusses assignment. Katie was assigned 100 shares of USO (from her short 33.5 Put) and they analyze the risk of the change (if any). After determining Katie's risk has not really changed (only her buying power has), the team takes a look at scenarios in which Katie would actually make money on assignment, one of which being if the price of USO climbs above $30.
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