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I did a short strangle on SPY. I have some assignment risk of being short SPY @ 190. I have a couple questions. If my short call is assigned will I go short on the stock or will it be purchased at market and I eat the intrinsic value, or does that vary by broker, maintenance balance, etc. (i.e., it depends on my specific situation)? The other question is if I can expect to be short SPY @ 190, I am thinking about selling some SPY leaps @ 190 and turning it into a covered put and see what happens with the market. The anticipation would be long-term bullishness with some frothiness come election time. When I think we won't hit 190 again, cover the short and let the short put expire worthless. The other option is market correction, put expires ITM, short gets covered, and I get a large premium in the downturn. Looking for opinions or alternate strategies, or to find out if I'm actually a complete moron and not a Fool. Thanks!
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