Basics
Assignment
When option seller must fulfill obligation
What is Assignment?
Assignment When an option seller is required to fulfill their obligation. Call sellers must sell shares; put sellers must buy shares. Assignment typically happens when options are in-the-money at expiration.
Complete Definition
When an option seller is required to fulfill their obligation. Call sellers must sell shares; put sellers must buy shares. Assignment typically happens when options are in-the-money at expiration.
Example
You sold a $150 put on AAPL. If AAPL closes at $145 at expiration, you'll likely be assigned and must buy 100 shares at $150.
Related Terms
Want to Learn More?
Explore our educational resources and analytics tools to deepen your understanding.