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

Hey everyone. This is Kirk here again from Option Alpha. Again, welcome back to the daily call. Just to kind of dovetail on the podcast that we had yesterday, today, we’re going to be answering the question again that relates to option assignment and out of the money contracts and that is, “Is it possible for out of the money option contracts to get assigned?” The question really comes from a member who was wondering, “During an expiration month, if you have a contract that’s out of the money, typically, people would associate that contract with having very little to no risk of assignment.” But he was wondering, “Do they ever get assigned and if so, what would be the reason that somebody would then assign an out of the money option contract?” To back up a little bit, I would say that it's very unlikely that out of the money contracts get assigned. Again, if you listen to yesterday’s show, 289, you’ll understand why those out of the money contracts are very unlikely to get assigned and it's because there's no