Timing and uncertainty

Early assignment risk: what it means

Some contracts can be exercised before expiration, so a short writer can face assignment before the printed date.

Review

• Whether the contract permits early exercise.
• Upcoming events that may change incentives.
• Whether the account can handle shares, cash, or risk.
• Broker notifications and deadlines.

Example

A short call may be assigned during active trading. A probability estimate is not a guarantee.

Primary reading: OIC exercise and assignment overview · SEC Investor Bulletin · FINRA assignment guide