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What Happens When You're Assigned an Option? (Yiddish)
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What happens when an option gets assigned? In this (Yiddish) lesson, I explain what assignment and exercise really mean in options trading — and what it means for your account when it happens to you. Whether you’re trading covered calls, cash-secured puts, or spreads, this is a must-know topic. ⚠️ Disclaimer: This content is for educational purposes only and does not constitute financial advice.
Categories:Education/Finance
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My
in lesson explain
option
exercise
[music]
determined lot expiration. So
assignment
options [music]
[music]
statistics.
So
what's mind assignment and what's mind
exercise the co options contract
exercising the contract the seller
obligation
was when
>> [music]
>> options. Call options put options.
Call
a call option.
price
from the shares.
The buyer
$500
is dollar. So this is by call option
[music]
put option
the strike price
option $100 strike price
[music]
options. options. So do American style
options and so do European style
options. [music] American style options
come and exercise any time before
expiration. [music]
actually [music] an assignment on the
shares.
So
in the money
based of them
when the option is deep in the money
style options
exercise. By the way,
SPX, [music] which is basically options
market index, S&P 500. S&P [music]
is a cash settled option.
in the money
[music]
shares.
The S&P the index S&P 500 index [music]
the European style options
assigned
Cash settled.
Option
broker is obligated
consequences.
So a margin call
for them.
with
cash
[music]
management assignments.
[music]
So
the stock
price
amount the strike price is
strike.
So the risk assignment
unexpected
expected
[music]
prepared for usation
assignment [music] and exercise.
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