When are options (call option) assigned to you? |

When are options (call option) assigned to you?

Are there any other times a call option can be assigned to you, other than being in the money at the expiration of the option contract w/ the stock at or above the strike price. If anybody know of any good option website where I can learn bout options that would be helpful. Thanks

Options are not assigned to you, but sometimes the option is exercised and stock is assigned to you. If you sell a call, the owner can exercise the call at anytime and “call” away your stock at the call price. This could happen if the option owner wants to get dividends. If you sell a put, then the owner can “put” the stock to you at any time at the put price.

Here’s an intro to options with more info:

http://www.investopedia.com/university/options/

This entry was posted on Monday, May 25th, 2009 at 10:18 am and is filed under call option. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “When are options (call option) assigned to you?”

Yardbird on May 25th, 2009 at 4:01 pm

Options are not assigned to you, but sometimes the option is exercised and stock is assigned to you. If you sell a call, the owner can exercise the call at anytime and “call” away your stock at the call price. This could happen if the option owner wants to get dividends. If you sell a put, then the owner can “put” the stock to you at any time at the put price.

Here’s an intro to options with more info:
http://www.investopedia.com/university/options/

References :
Jamie Taliaferro on May 25th, 2009 at 4:11 pm

The stock (call option) will only be assigned to you if it ends ABOVE THE STRIKE PRICE, called ending “in the money”.

Unless you have a lot of money to purchase all this stock, you should try to make money buying and selling the call BEFORE the expiration date!

Questions? switze22@msu.edu
References :
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