Expiry, assignment and the short-dated trap
Know what happens at and before expiry, and why short-dated options drain beginners.
Module 12 of 26, Options for beginners, in practice. Lesson 6 of 6, about 14 minutes.
The takeaway
Short-dated options appear cheap because time decay is fast and the real probability-weighted payoff is often lower than the premium. Know your broker’s assignment rules, have cash or stock ready, and never sell naked calls unless you understand the unlimited loss risk.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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