Glossary

Assignment

By Rohan Fernandes, Founder · Updated 2026-08-22 · Educational reference, not investment advice

Assignment is the fulfillment of a short option's obligation when a holder exercises: a short put buys 100 shares per contract at the strike, a short call delivers them. American-style options can assign any day, but rational assignment waits until remaining time value is smaller than the value of exercising.

For defined-risk spreads, assignment on the short leg leaves the long leg's protection intact, so the worst case is unchanged and the event is administrative. For cash-secured puts it is the wheel's designed transition into stock. The mechanics, the early-assignment test, and pin risk are covered in the assignment article.

Educational reference. Options Scanner is a software tool. It is not a broker-dealer, an investment adviser, or a fiduciary, and nothing on this page is investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for every investor; read the Characteristics and Risks of Standardized Options before trading. Examples use hypothetical numbers for illustration only.