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    Put option get assigned but strike price was not hit

    I sold some 0 dte put options on QQQ on Friday afternoon just one hour before market close. The strike price is 447.5.

    I was watching the market all the way until market close and the price was dropping all the way but never touch 448.

    I thought this was the end of it all. A successful trade and the option expire.

    On Saturday morning, i was surprised to learn that my put option was exercised.

    The buyer of my put option decided to sell me his QQQ shares at 447.83 – way lower than market price.

    Really? Why did he chose to do that instead of selling in the open market and collect a higher price?

    Also, since the market has already closed, how did he do it?

    Put option get assigned but strike price was not hit
    byu/ukfi inoptions



    Posted by ukfi

    View 18 Comments

    18 Comments

    3. joebenson17 on

      QQQ after hours dropped below $447 so they were assigned. General rule of thumb is to close before the market closes even on expiration dates as after hour price movements can still lead to assignments. Pay the few cents and not have any assignment risk for AH price movements.

    4. daytradingguy on

      Options can be exercised up until 4:30 pm- CST (5:30 EST). the Qqq market dropped after the 4pm EST close.

    6. Maleficent_Rate2087 on

      That’s a good thing. You got keep all premium plus you got assigned below what it’s trading. Whsts your complaining about. I call bs cause assignment doesn’t happen during trading hours. Happens overnight

    7. rokman on

      This is the best time to learn the rules of options you are aloud to exercise options for a small period of time after market close

    9. Cold-Froyo5408 on

      Absolutely always close out spreads on/by last hour of trading day of exp, could see movement and get assigned while your broker already sold your long strike, that would be life changing

    10. lobeams on

      You’re selling 0DTE puts an hour before market close and you don’t know how this happened? That, of course, means you didn’t even know it *could* happen. You’re the second person this week who made this same mistake, which is trading options without understanding the risks of the trades you’re making.

      Maybe learning how options work before trading them would be a good idea.

    12. Sarduci on

      Had the same thing happen to me last week. Ended up with $2.45 diff between close and the strike price that I just shoved in my pocket by selling pre market. Took the day off.

    13. chenlukai on

      “The buyer of my put option decided to sell me his QQQ shares at 447.83”.

      I’m going to clear up some confusion here that I don’t see the rest of the commenters addressing.

      The person who exercised and sold you his shares is not the one who bought the puts you wrote. There were a pool of people who exercised the puts, and there’s also a pool of people, including you, who sold the puts. The ones who get assigned are picked randomly.

    15. AOB23423 on

      My man, Wait till you wake up Monday. And wait to find out where you really sit. Chances are market maker was positioning over the weekend.

      I mean if you were trying to skate on it instead of using it to get into a position then you couldn’t have picked a worse idea.
      Literally the highest amount of risk for the least amount of money.

      Always close your position out of you have any worries about being assigned.(this qualifies as contra exercise because the move happened after hours meaning they manually initiated the assignment/willingness to exercise).

    17. WolverineHelpful9775 on

      Good lord, this belongs on WSB lol. And I like how you think 447.83 is “way lower than market price” 🤣

    18. Metcafe83 on

      Man so many people post this question every weekend, it’s almost like they don’t understand how selling options work before opening their trade.

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