Assignment

1. The transfer of an individual's rights or property to another person or business.

2. A notice received by an option writer stating that the option sold has been exercised by the purchaser of the option.



1. Essentially, an assignment is the transfer of ownership. An example of an assignment, is when a person sells their car (thereby transferring the title) to another.

2. When assigned, the option writer has an obligation to complete the requirements of the option contract. If the option was a call (put) option then the writer would have to sell (buy) the underlying security at the stated strike price.





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Related Terms

Call

Exercise

Income

Option

Put

Strike Price

Writer

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