I use covered calls and frequently have assignments on expiration day. I was wondering when the settlement would actually occur. If I know my stock is being called away on expiration day can I make purchases on that day without actually borrowing money(assuming I have no cash)?
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When do assigned options settle?
- Thread starter DiagonalSpread
- Start date
So purchases made on expiration day would settle the same day as assignments?
Quote from a529612:
From my assignment experience, the proceeds from the assignment will hit the account on Sunday afternoon. You are free to trade on the following Monday.
That's just when they booked the assignment into your acct.
You'll also notice most broker book stock into your acct immediately when you exercise prior to expiration even though the exercise instructions aren't transmitted to the OCC until after market close. The exercise technically takes place over night.