What is Options assignment?
In short, an Options assignment is the random allocation of an exercise obligation to an Options writer.
An Equity options assignment is when the Options seller must fulfil the obligation of an Options contract by either selling or buying the underlying security at the exercise price. This is due to the buyer of an Options contract exercising their right to buy/sell the underlying security.
ASX Clear randomly selects (assigns) a seller of the contract to complete the obligations of the contract as follows:
- Call sellers will sell the underlying stock at the exercise price.
- Put sellers will buy the underlying stock at the exercise price.
If you are assigned an Equity Call Option and do not hold the underlying stock, you must purchase the required units no later than 2pm Sydney time on the following trading day.
If you are assigned an Equity Put Option and do not have sufficient cash to settle the stock purchase, you must sell the required units no later than 2pm Sydney time on the following trading day.
If you are assigned an Index Option, you must supply the cash settlement amount on the first ASX settlement day after expiry.
Please note: If the required units have not been purchased, CommSec may purchase the outstanding units at their discretion. CommSec will not be held liable for market movements of the underlying stock.
We're here to help
For further assistance on options assignment, please call the CommSec Options Desk on 1800 245 698 (8am to 5:30pm, Monday to Friday, Sydney time).
