After-hours options assignment cut-off

Q

qlai

Hi, guys. I know this was discussed here multiple times, but I can't seem to dig up the answer. Is there a guaranteed cut-off time after which option may not be assigned?

For example, I have covered call expiring tonight on a highly volatile stock (I think you can guess which one lol). It's too close to the strike price, so I'm not sure if I get assigned or not. If the stock starts moving after-hours, I would like to trade out of the shares, but I'm not sure when the call is no longer assignable. I've read that up to 1.5 hours after the market close, so 17:30 EST. Can I rely on any timeline or just be on the safe side wait till the next day to find out?

Thanks!
 
qlai said:
Hi, guys. I know this was discussed here multiple times, but I can't seem to dig up the answer. Is there a guaranteed cut-off time after which option may not be assigned?

For example, I have covered call expiring tonight on a highly volatile stock (I think you can guess which one lol). It's too close to the strike price, so I'm not sure if I get assigned or not. If the stock starts moving after-hours, I would like to trade out of the shares, but I'm not sure when the call is no longer assignable. I've read that up to 1.5 hours after the market close, so 17:30 EST. Can I rely on any timeline or just be on the safe side wait till the next day to find out?

Thanks!
More...

you also have the problem of auto assignment. If you are short the option, you can’t predict what will happen. Your best bet in my opinion is to hold the shares because if you sell and then get assigned you could have all sorts of problems.

I thought it was 430 or 530pm.
 
qlai said:
Can I rely on any timeline or just be on the safe side wait till the next day to find out?
More...
Options technically expire on saturday. Cutoff times are determined by the broker.
Also Options are exercised if not in the money if holder of the call option believes the stock will open up higher on Monday
 
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