DON’T DO THIS After Getting Assigned (RZLT Example)

If you sell puts, get assigned, and the stock collapses…
DO NOT DO THIS.
This one decision cost a trader $420 instantly — and it didn’t have to.

I’m going to show you the exact trade, the exact math, and the one move that would’ve let her exit much sooner instead of locking in a big loss.

This video might completely change how you think about assignment.

In this breakdown, I use RZLT as a real-world example of what happens after a short put gets assigned — and why panic-selling shares can be one of the most expensive mistakes options traders make.

What happened (the full setup):
✅ Sold a $7.50 put on RZLT
✅ Collected $1.20 premium
✅ Got assigned 100 shares at $7.50
✅ True cost basis became $6.30 (because premium lowers your basis)
❌ Stock collapsed as low as $1.23 and later traded around $2.30
❌ Trader sold and locked in a -$420 realized loss

What I show you in this video:
• How put assignment actually works (and how premium changes your real basis)
• The simple spreadsheet math to calculate your true cost basis
• A practical example of averaging down at a lower price (like $2.30) and how it can:
• lower your break-even
• help you exit sooner
• reduce the time you’re stuck “waiting for the stock to recover”
• The #1 rule that decides whether put-selling is safe or dangerous: ticker selection ‼️
• Why chasing high premium on the wrong ticker can lead to massive drawdowns, stress, and bad decisions

The core lesson:
If you’re going to sell puts for income, your job isn’t just collecting premium — it’s risk management. The biggest edge isn’t the option chain… it’s picking the right stock so you can manage drops intelligently.

⚠️ Not financial advice. This is for educational purposes only. Always do your own research, understand your risk, and consider your account size and margin requirements.

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#OptionsTrading #SellingPuts #PutAssignment #WheelStrategy #OptionsIncome

Chapters
00:00 DON’T DO THIS after assignment
01:03 The exact RZLT trade + basis math
03:42 The panic sell mistake
04:53 Spreadsheet: averaging down example
14:34 Checking big buys on SEC Edgar
18:45 Key takeaways + rules