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

  1. What are the differences between standardized options and employee stock options?
  2. 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?
  3. Does an increase in open interest imply a bullish sentiment?
  4. I own options on a stock that has just declared a 2 for 1 stock split. What happens to my options?
  5. What's the difference between options and futures?
  6. Why do some stocks have options for trading while others don't?

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