What Happens When an ITM Vertical Spread is Assigned?

<p>Assignment is part of the process of selling premium, and a cost of doing business in some regards. And while we’re usually able to avoid assignment for the most part <a href="https://ontt.tv/eOonH">(even with an upcoming dividend)</a>, there will still be times when an in-the-money position expires, and we are assigned. </p> <p>So what happens in a situation where we have two legs of a <a href="https://ontt.tv/dREvz">vertical spread</a> that are both in-the-money, and they are assigned? This very thing just happened to our AMZN position, so we unpack the details around the actual assignment and its impact on our position’s profit or loss.</p><p>[Be sure to connect with <a href="https://twitter.com/jschultzf3" target="_blank">Dr. Jim on Twitter</a>!</p>