How are options assigned?

spinn said:
Hey everyone, so I have had a few options assigned early which I imagine we all hate because that is almost always to our detriment. But my question is, how does an individual get access to these options so I can buy or sell the stock? For example, I made a bad trade a few months ago. I sold a put on a stock about $4 in the money. When I make these trades I place a hard stop in the system so if it goes bad, I will get out. In this case however, before that even happened, I was put the stock at a $4 loss on execution before option expiration. So who assigned this, can I do it (doubt it), and how would I do it?
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And also how come your stop did not get executed? What was your stop price? Was it a stop-loss or a stop-limit? When you said "hard stop", I take it it's a stop-loss order? This is something that you could take up with your broker to find out. Why wasn't your stop-loss order executed?
 
Overnight said:
CBC man. Plus a free mojito.
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For how often? The second day of the third week of each quarter and if it's a weekend then it's the last day of the fourth week of each quarter and if that's a rainy day then it's the first day of the second month of the last quarter? LOL

And you think us option guys are crazy...
 
Yeah, me and three other people went in together (quarters).

I couldn't believe the guy in charge took actual delivery!!


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Pork Bellies option contracts are available for trading at Chicago Mercantile Exchange (CME).

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To buy the stock at 96 when it’s trading at 100, OP would have had to buy the call, not the put.

fnnwizard said:
I thiink a few readers here are not comprehending the quoted question.

He was put a stock (iow, our op had to pay 100, when it's trading at 96). He is asking what he can do to be the other side of the trade, which is buying the stock at $96 when it's trading at 100.

The answer should be very obvious... buy the puts = pay the put premium. We have no idea who and when this other person who excercised, bought the 100 strike puts. But that person didn't just buy the stock for 96. S/he paid a premium also. Without knowing the price activity of the underlying and timeframe of the put purchase, one can not say if that was a profitable ordeal.
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ETJ said:
Or sell the put for $4 - how much premium did OP harvest?
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If the underlying is on a downtrend, that might get the OP assigned again. With this price, the option might be ATM or very near ATM. Of course we don't know the other info. like IV or DTE and etc.
 
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