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mqazi1373

Bull Call Spread: Assignment

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Hi All

I have several Bull Call Spreads on SPY with different expiration dates spread out over next month. They are targeted to get profit of 6-10% with strikes below the current SPY price.

For example:

SPY C435/440 Dec 20, 2021.

SPY C425/430 Dec 31, 2021.

SPY C425/430 Jan 03, 2022.

 

Today I got several of the short legs assigned; I saw some of the legs were expiring in Jan 03, 2022 which lots of time value left. I have bought back the shares and then Written those short legs to re-instate the Bull Call Spread. (I probably should have entered Bull Put Spread to avoid this situation). 

An example below for SPY C425/430 Jan 03, 2022, I had 4 BCSs, 3 short legs were assigned, TV=1.12 still left:

 

image.png

 

Anyone experienced similar assignment with so much time value is still left? Why such kinda assignments happen?

 

 

Edited by mqazi1373

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