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Assignments after closing buys
Q: Can i be assigned if I buy-to-close a short position?
A: You will not be assigned because the Options Clearing Corporation processes closing buys before exercises. Hence, there can no assignment on positions that had been closed via buy-to-close orders placed within that day's trading hours. However, there exist a possibility that assignment had already taken place the day before but have not been communicated to you. To be 100% sure, check with your broker.
More Frequently Asked Questions
- What are the differences between standardized options and employee stock options?
- I recently bought a call option. Since then, the stock price has risen and so has the call option. I wish to sell my call option for a profit but am I obligated to deliver the underlying stock if the option buyer decides to exercise his call option?
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