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Look, I know most traders panic when they hear the word assignment. They treat it like some kind of failure, like they did something wrong.
Me? I got five assignments over one weekend and I couldn’t have been happier about it. That’s not a mistake — that’s the gift that keeps on giving.
When you’re running the triple income strategy the right way, assignment isn’t the problem — it’s the plan. The whole idea is simple: You sell cash-secured puts on stocks you already want to own, collect premium and if you get assigned, great.
You just picked up shares at a discount and got paid while doing it. From there, you turn around and start selling covered calls to generate even more income.
The Vertiv Setup: Chasing It Until I Got It
Let me tell you about the one I love the most. I’ve been trying like crazy to get into Vertiv (VRT).
I wanted this position badly — good company, solid chart, the kind of name I’m happy to own and sell calls against. So I kept selling puts week after week, collecting premium and waiting.
I had two contracts — one at $260 and one at $265. I got all 200 shares put to me over the weekend.
Even though it dipped Friday, it opened at $268 on Monday, and suddenly I’m sitting on a massive win on a stock I wanted to own anyway.
I didn’t have to guess, chase or hope. I just got assigned at my price and the market did the rest.
Now I’ve got 200 shares in my account and I can start selling covered calls against them this week. More premium, more income — that’s how the triple income strategy — aka the wheel — works.
Why I Don’t Fear Assignment
Here’s the difference between how I think about this and how most people do.
When I sell a put, I’m not hoping it expires worthless. Sure, that’s fine — I keep the premium and move on.
But if I do get assigned, I’m not scrambling. I wanted those shares at that price or I wouldn’t have sold the put there in the first place.
Assignment gives me two things: a position I like and the ability to immediately start generating income by selling calls against it.
That’s the wheel. That’s the structure. And when the market is strong, like it is right now, assignment can put you in the perfect spot to capture the next move higher.
The weekend timing doesn’t hurt either. You go to bed Friday night with short puts on the books, then wake up Monday morning, check your account and boom — you’ve got shares.
And if the stock gaps higher like VRT did, you’re sitting on an instant gain before you’ve even had your coffee. So you could sell the shares immediately, or sell covered calls, which is what I do.
Five assignments in one weekend? Most traders would be stressed. Me? I’m looking at five new positions I can work, five new opportunities to sell covered calls and five more reasons to love this strategy.
If you’ve been treating assignments like something to avoid, maybe it’s time to rethink that. When you pick the right stocks and the right strikes, getting put shares isn’t a problem — it’s the whole point.
Trade well,
Jack Carter
Jack Carter Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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Disclaimer: We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past Performance is not indicative of future results. All gains cited are from a related service that uses the Cash Flow Agent. From 1/1/21 through 2/20/25, the average return per options trade alert published in real time (winners and losers) is 3.18% in 3 days, with a 96.1% win rate.
