Questions tagged [assignment]

I'm still really new to options but I'm trying to understand this concept of assignment. Let’s say I’m short a call of Microsoft at a strike of 80 set to expire in a quarter. Microsoft surges for one day, going up to 86. Someone long a call for the…

In options: What is the difference between the two? Assignment: http://www.investopedia.com/terms/a/assignment.asp#axzz1tG3VpKt8 Physical Delivery: http://www.investopedia.com/terms/p/physicaldelivery.asp#axzz1tG3VpKt8 Is there something called…

I put on a debit weekly diagonal ITM put spread trade on stock A selling at $45 : I Buy back week put strike 55 sell front week put strike 50. I am assigned overnight and have to purchase 100 shares of Stock A for $50 ($5000 debit that creates a…

If I sell an option, and the option goes in the money prior to expiration, and I get hit with an early assignment notice, can I still close out the option after I get early assignment notice? I was of the impression that we can close out an option…