0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Featured video
External links


Hide links

Exercise is when a the owner of a call or Put Option asserts their right to buy or sell the Underlying asset or commodity. It is the opposite side of Assignment (which applies to Options sellers). The rules about when an option contract owner can exercise their rights depend on whether the option is American Style or European Style. The former allows Options to be exercised at any time, the latter only at Expiration. Options which are In The Money at Expiration are typically automatically exercised. American Style Options on stocks might get exercised early by the owner to take advantage of the payment of dividends on the Underlying.
Rating: 0/5 (0 votes cast)
Contributed by: Ralph Windsor

External Links

Suggest a Link

Options Assignment FAQ

An FAQ prepared by the Options Industry Council about Options Assignment.

Rating: 0/5 (0 votes cast)

View OIC Options Glossary in Options Market Glossary Directory

Exercise and Assignment, Early or Otherwise

A ThinkOrSwim article explaining Options Assignment and Exercise.

Rating: 0/5 (0 votes cast)

View ThinkOrSwim in Options Market Glossary Directory

Options Quick Facts - Expiration, Exercise and Assignment

CBOE article on Options Exercise and Assignment.

Rating: 0/5 (0 votes cast)

View CBOE Options Dictionary in Options Market Glossary Directory

What Is Early Exercise And Assignment?

Options Playbook article describing Assignment and Early Exercise.

Rating: 0/5 (0 votes cast)


There are currently no comments for this term.

Post a Comment

You must be registered and logged in to post a comment.


There are currently no videos for this term.