May 27, 2025 · For most stock and ETF options, which are settled American-style, long positions can be exercised at any time, leaving short positions vulnerable to being 'assigned.' This guide …

For Long Puts to be eligible for exercise, the underlying stock must be either held long in your account or available to short (listed under the Easy to Borrow List). Generally, out-of-the …

When you are long options, you have control over whether those options are exercised (until expiration when any long options position that is in-the-money by $0.01 or more will …

The scenario explored below is one in which the short leg of your defined-risk spread gets assigned and you’re stuck with the resulting position along with the long leg.

This means there is risk of early assignment if you are short, and an opportunity to exercise early if you are long. Index options are European, so the option owner only holds the right to …

Mar 15, 2023 · If an option on XYZ is exercised or assigned and you are "uncovered" (you don't have an existing long or short position in the underlying security), a long or short position in the …

Option exercise and assignment always occurs between member firms of the CME Clearing House, acting as agents for their account holders who are the ultimate owners of long or short …

Feb 11, 2022 · With thousands of traders long and short options in the market, who actually gets assigned when one of the traders exercises their option? In this section, we’ll run through the …

Yes, while in the money long options are automatically exercised only during expiration, as long as you are holding in the money short options, you are in "danger" of an assignment anytime …

Mar 22, 2022 · Exercise — When an option contract is executed by the option buyer. Assignment — What happens to shares of an option contract. As an option seller, you can be assigned 100 …