Is it possible to opt out from option assignment?

[traider]

Too bad you haven't grasped the problem nor the thread...
...because assignment can happen any day, you just can't know when it's going to happen.
What you talk of is the European style options, not American style. The majority is AS.

You can always call the clearing house and ask them not to assign to your account but to dump the bag on some other unlucky person. But I heard you need to know someone in congress.

 

[traider]

More info:

https://www.investopedia.com/terms/a/assign.asp
"
...
Not all options contracts will be exercised or tendered. The ones that are exercised or tendered must be settled with the delivery of the underlying security. These are randomly assigned to brokerages that, in turn, randomly select which of their clients will be assigned.

During an assignment of options or futures contracts, the clearinghouse assigns an option writer who will be the required buyer or seller of the underlying contract upon its exercise.
...
"

You can also try Goldman. I heard they never get assigned even though its supposed to be random.

 

[rb7]

You can always call the clearing house and ask them not to assign to your account but to dump the bag on some other unlucky person. But I heard you need to know someone in congress.

Lol....
Even if you know someone at the OCC, they do the random assignment per broker.
They have no information about individual client/trader.
They wouldn't be able to not assign a particular trader even if they wanted to.

 

[ajacobson]

Can't avoid assignment, but if the issue is not losing the particular lot(s) of stock there is a process that most brokers refer to as same-day substitution. Essentially you trade a "cash settlement" and deliver that against the exercise. Cumbersome, costly and many brokers don't want to facilitate it anymore. So ask your broker now before you need it and understand what is required

 

[nooby_mcnoob]

Too bad you haven't grasped the problem nor the thread...
...because assignment can happen any day, you just can't know when it's going to happen.
What you talk of is the European style options, not American style. The majority is AS.

What happens if your account doesn't have enough margin to hold the shares? Do they exercise and immediately liquidate? Seems like a roundabout way to do things.

 

[thecoder]

What happens if your account doesn't have enough margin to hold the shares? Do they exercise and immediately liquidate? Seems like a roundabout way to do things.

You have to be specific, ie. exact, as there are multiple possibilities.
Which case exactly do you mean? Option buyer / seller, option type Call / Put ?
Sorry, I'm not an expert on this specific scenario as it depends also on the broker.
But maybe someone else can answer.