How to Improve Option Early Assignment Value : options


So I trade a lot of ITM credit spreads and get early assigned a couple of times a month. I normally just do a covered position for the same credit as my long position or better. Now Since some of these positions are pretty far out(just got assigned 48 days out on a put this morning) I had an epiphany. If I can close my long for the same credit… why not do the same short position to close it… but on an earlier date. That way I would still have more value from the new calendar spread I created for the same cost I would have had to just close the position. Why did I not think of this before?

Normal covered position to close early assignment. Short put is on same date as long.

r/options - How to Improve Option Early Assignment Value

Same covered position to close early assignment, but the keeping my long and creating a calendar spread.



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