Glossary · Options

Assignment

When the buyer of an option you sold exercises it, and you must deliver or buy the shares.

Why it matters

Short options in the money can be assigned at any time, most often near expiration or before a dividend.

How to read it

Close short options before expiration to avoid surprises.

Related

OptionA contract giving the right, not the obligation, to buy or sell 100 shares at a set price by a set date.Cash secured putSelling a put while holding the cash to buy the shares at the strike.

In the Cluenex app, this explanation opens next to every assignment figure, with the live reading for the stock you are looking at. Open it in Cluenex