Options Expiration and Assignment Guide

Review option expiration, exercise style, early assignment and settlement obligations.

Options Expiration and Assignment Guide is a 4-page PDF field guide. Exercise style, early assignment, expiration and settlement checks.

• Contract terms govern: American- and European-style exercise, cash or physical settlement and cutoff rules can differ.

• In the money is not risk free: Automatic-exercise thresholds, fees and broker procedures require verification.

• Pin risk creates uncertainty: Near the strike, after-hours price changes and exercise decisions can alter the resulting position.

• Early assignment exists: Dividends, borrow conditions and remaining extrinsic value can influence exercise behavior.

Action checklist: Identify style and settlement method; Read broker cutoff procedures; Check ex-dividend and corporate-action dates; Close unwanted exposure before cutoff; Reserve buying power for assignment; Verify the account the next business day.

Broker rules and contract specifications control; confirm them directly for each position.