Assignment

Assignment happens when an option buyer exercises their contract and the Options Clearing Corporation randomly matches you, as the seller, to fulfill it — you may never have dealt with that specific buyer. If you sold a put, assignment means buying 100 shares per contract at the strike price; if you sold a call, it means selling 100 shares per contract at the strike. Most equity options can be exercised any time before expiration, not just on expiration day — early assignment is most common around dividends, especially for deep in-the-money short calls right before the ex-dividend date. Assignment is a normal, expected outcome of selling options, not a sign something went wrong. That's why experienced sellers only sell puts on stock they'd be glad to own, and only sell calls on shares they're genuinely willing to let go.