STOP Getting Scammed! The TRUTH About Stock Assignment

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The Assignment Anxiety

Covered call trading is a popular income-generating strategy among investors. But for many, the term "assignment" brings with it confusion, fear, and misinformation. What happens if your stock gets assigned? Is it a disaster? Have you been scammed by the market? In this video breakdown, Mark Yegge sheds light on this misunderstood part of covered call trading while broadcasting from the windy cliffs of Greece. Let’s dive into the truth about stock assignment and how you can use it to your advantage.

The Basics: What Is Assignment?

When you sell a covered call, you are giving someone else the right (but not the obligation) to buy your stock at a specific price (the strike price) before a certain expiration date. If the stock price rises above that strike price, the option buyer may exercise their right to buy your shares. This is called assignment.

Assignment simply means you've reached your maximum profit potential from that trade. The juice (extrinsic value) is yours to keep, and you can walk away with a gain. So why all the panic?

The Common Misconceptions

Many traders worry that being assigned means they've made a mistake. But as Mark points out:

Assignment is a sign of success, not failure.
You still have control over your trade outcomes.
Rolling your position (buying back the current call and selling a new one) can often prevent assignment.

Mark has traded covered calls for years and has only been assigned a handful of times. It’s rare – and often a choice, not a punishment.

What Actually Happens When You’re Assigned?

Let’s say:

You own 1,000 shares of a stock at $100.
You sell 10 covered calls with a $95 strike price.

If the stock closes above $95 on expiration day, you could be assigned. That means:

Your 1,000 shares are sold at $95.
Your account is credited with $95,000 in cash.

Now, if you’re using synthetics (like deep in-the-money LEAPS), things are slightly different:

The assignment doesn’t convert your LEAPS into shares.
Instead, you’re left short 1,000 shares, and you can cover the short by:

Buying shares on the open market.
Or exercising your long LEAPS (not usually recommended due to time value loss).

So What Should You Do If Assigned?

If you are assigned, here's how to handle it like a pro:

Don't panic. You likely made your max profit.
Cover the short. Buy the shares back or exercise your LEAPS.
Re-enter the trade. Use your cash to buy back in and sell another covered call.
Avoid future surprises. Roll the position before expiration if you're deep in the money.

Why Mark Stays In-The-Money

Mark prefers selling in-the-money (ITM) calls because:

It offers downside protection.
It ensures a higher chance of profit.
The trade becomes less dependent on predicting direction.

He focuses on making 1–2% per week in income from the "juice." That compounds fast, providing consistent growth even if the stock stays flat or moves slightly down.

Life Tip from the Market

Just like Mark's beautiful Greek backdrop teaches us to go with the flow of the wind and waves, covered call trading teaches us a crucial life lesson:

Don’t stress over what you can’t control. Focus on managing risk, planning ahead, and creating consistent results.

Assignment isn’t failure – it’s simply part of the strategy. Once you understand it, you take the mystery and fear out of the process. That’s when the real income starts flowing.

FAQ: Stock Assignment Edition

Q: Will I always get assigned if my stock closes above the strike price?
A: Not always. It’s the buyer’s choice to exercise the option. It’s rare before expiration unless there’s a dividend or extreme volatility.

Q: Can I avoid assignment altogether?
A: You can often avoid it by rolling your position (closing the short call and opening a new one) before expiration.

Q: What happens if I get assigned but I used a synthetic position?
A: You’ll be short the shares. You can cover it by exercising your long option or buying shares outright.

Q: Is it bad to get assigned?
A: No – it means you earned your max profit. Assignment is simply how the trade gets settled.

Call to Action

Ready to stop worrying about assignment and start focusing on income?

Subscribe to Mark’s YouTube channel for more advanced income trading insights.
Join the Insider Tips Newsletter to stay ahead of the market with exclusive strategies.
Consider Mark’s Cash Flow Machine Elite Course to master weekly income trading using covered calls, synthetics, and advanced techniques.

Knowledge is power. Income is freedom. Let’s build both — one contract at a time.

Get started today

Conclusion: Assignment Isn’t the Enemy – Ignorance Is

When a covered call gets assigned, you haven’t lost – you’ve won. You received your maximum profit, collected the juice, and lived to trade another day.

Whether you roll, re-enter, or reset your position, it’s all part of the covered call game. And as Mark says, the game is all about the juice — the weekly income you collect regardless of whether the stock goes up, down, or sideways.

So, stop fearing assignment. Start embracing the knowledge that puts you in charge of your income.

STOP Getting Scammed! The TRUTH About Stock Assignment

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