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The receipt of an exercise notice by an options writer that requires the writer to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.


A sale or gift, especially of a contract or an obligation. While assigning contracts is common, not all contracts are transferable. See also: Assignor.


The transfer of a registered security from one owner to another.


Assignment occurs when someone who has written, or sold, a listed option receives a notice that the option has been exercised and he or she must fulfill the terms of the contract by buying the underlying instrument if the option was a put or selling the underlying instrument if the option was a call.

Making the assignment is a two-step process. When an option listed on a US exchange is exercised, the Options Clearing Corporation (OCC) notifies a member broker-dealer firm with clients who have sold options in that series that one of those clients must meet the obligation to buy or sell. The firm, in turn, selects an individual client following its particular methodology, such as chronological order of sale or random choice.

As the writer of an in-the-money option, you should expect assignment, unless you close out your position with an offsetting contract. However, there is no guarantee that you will realize a profit or avoid a loss.

Assignment also means transferring property you own, such as stock and real estate, to someone else by using the document that's appropriate to the type of property. Similarly, property of a financially troubled entity can be assigned, or transferred, to a creditor and sold to offset losses.


The transfer of ownership, rights, or interests in property by one person, the assignor, to another, the assignee.

References in periodicals archive ?
Random assignment, however, leaves open the possibility of having only a single baseline or post-intervention observation and identical starting points across cases.
Our results show how to approach the random FIAP using results for the random assignment problem.
Litigants may also attempt to game an otherwise random assignment system.
However, I shall make some brief comments on their justification--sketchy as it is--for not employing random assignment.
01 was used to determine significance due to violation of random assignment of participants to conditions.
Possible solutions How can random assignment be made feasible and palatable?
When both random selection and random assignment are not feasible, researchers must determine which is more important to the claims they want to be able to make on the basis of the results.
In the UK, there have been a few tentative uses of random assignment of programme treatments, such as the Restart Interviews for unemployed people (White and Lakey, 1992) and New Deal for long-term unemployed.
The Government has decided to change its policy of random assignment and Jackie has got her grant.
Random assignment within schools also meant that the small-class students knew they were receiving special treatment.
If the samples are properly chosen, large enough, and thoroughly monitored for impacts, random assignment will yield solid statistical information.

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