Say I bought a F call debit spread when the Current price is 15.39.
I buy a 13.5call and sell a 15call. (Expiring 5/13)
Scenario A: Say ford price is over my $15 call i sold and I get assigned.
I now have to sell 100 shares at 15. Could my 13.5call I bought not execute? In this case, wouldn’t I have to sell 100 shares at 15 without buying 100 shares at 13.5?
My main concern with a debit spread is being assigned to sell and not being assigned to buy, at expiration or prior to expiration.
Scenario B:
Say stock price is at 16$ and the expiration is days away.
I get assigned to sell the 100 shares at $15. If my 13.5$call I bought didn’t get assigned and all of a sudden F drops to 12$. Since I already sold 100 shares at 15$ and now can’t buy 100 shares at 13.5$ since the stock price is below, then wouldn’t I be screwed?
To summarize it up. My big concern is this: when I am in a call debit spread and get assigned to sell, will I always automatically be assigned to buy? Im worried for some reason I am forced to sell but am unable to buy and end up getting screwed over.
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