Options are more likely to be assigned when the extrinsic value becomes very low or a if you are short a call with an upcoming dividend.
If assigned, you have a few options (no pun intended):
- Sell a call to create a covered call, thereby reducing basis
- close out the position and establish a new position
- or close the position out and move on
Tune in as Tom and Tony walk through these steps and when to use each!