An option assignment can happen at any time before expiration, including after market hours.
- A call assignment means you’ll need to sell 100 shares at the strike price for each contract.
- A put assignment means you’ll need to buy 100 shares at the strike price for each contract.
If you’re assigned on a short call or put, any open buy-to-close orders for that contract will be automatically canceled. This ensures your account reflects the assignment accurately and avoids conflicting trades.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Options Disclosure Document. Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.