They are the party that is writing the contract, or selling the option. As noted above, they buy it if it the option is a call and they sell it if it is a put. The term assignment is used when someone has a short position in a call or put and is called upon to fulfill their obligation by someone who is exercising their rights. Suppose I sell a call, when does the person on the other side get to buy the call you put up for sale. Option Trading AnswerGreat question. Before I get started, let me clarify a point.
The person does not get to buy the call, he gets to buy the stock at the strike price.The answer is relatively involved so I will try to answer it in stages. As the seller, you have no rights (you are at the mercy of the buyer). Option assignment process can never tell when you will be assigned. Once you sell an American-style option (put or call), you have the potential for assignment to fulfill your obligation to receive (and pay for) or deliver (and are paid for) shares of stock on any business day.
In some circumstances, you may be assigned on a short option position while the underlying shares are halted for trading, or perhaps while they are the subjects option assignment process a buyout or takeover.To ensure fairness in the dAccess DeniedThe Office of Foreign Assets Control (OFAC) of the Option assignment process Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in option assignment process related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States.Your IP address has been blocked in accordance with OFAC policy.Please contact Customer Service at (877) 598-3190 if you have any questions.
ExerciseTo exercise an option is to execute the right of the holder of an option to buy (forcall options) or sell (for put options) theunderlying security at thestriking price.American Style vs European StyleAmerican style options can be exercisedanytime before the expiration date.European style options on the other hand can only be exercised on the expirationdate itself. Currently, all of the stock options traded in the marketplaces areAmerican-Style options.When an option is exercised by the option holder,the option writer will beassigned the obligation to deliver the terms of the options contract.
AssignmentAssignment takes place when the written option is exercised by the options holder. A more advanced tutorial on the exact process that happens behind the scenes when an option contract gets assigned. I have a call credit spread for REN Oct 21, 201 22 short.