The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “What happens when an option contract is assigned?” Option assignment is something that a lot of people actually fear, but the reality is that it’s part of the options trading business. In fact, I would even argue to say that at some point in your career, if you actually do this for a while, you’re going to be assigned potentially multiple times. But it shouldn’t be something that you fear. You just have to understand how it works. I want to go through in this podcast really quickly, how the option assignment process actually works because it is a random process that happens. Nobody targets you necessarily for option assignment and many members know that are part of Option Alpha that sometimes we get assigned and other people don’t and sometimes other members of ours get assigned and we don’t, so it is a random process that happens. The first thing that happens is that the opt