Derivatives note, July 3, 2022. How to minimize the risk of assignment

Posted on by Milan Somborac

We should only sell (only sell and never buy) derivatives (puts and calls) in our “fun” portfolio. Doing so invites a level of risk inappropriate for our core portfolio.

Social Sciences Research Network (SSRN)  is an outstanding source of academic, evidence-based information. The SSRN economic papers are difficult for the layperson to understand, but the abstracts are manageable.

Some examples follow.

Which Index Options Should You Sell?

Covered Calls Uncovered

Covered Call Strategies: One Fact and Eight Myths

We present greatly simplified ideas which have been used by us at Monday Morning Millionaire.
Today’s post discusses how to minimize the risk of being assigned.
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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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