When should a covered call option be bought back to avoid assignment

Question

I am trying to learn options. I sold a covered call (weekly option) that will expire on October 25th and I want to avoid being assigned.

Should I buy it back on 24th (one day early) or can it be bought back on the 25th (the day of expiration)?

Answer 1

The simple answer is that you can trade equity options until 4 PM EST on the day of expiration.

Should you buy it back depends on whether it is in- or out-of-the money (and by how much), as well as whether you plan to write calls for a later expiration.