Why would Robinhood assign you shares before the official cut off? While retailers can't easily exercise late into the evening, broker dealers can.
I thought when I first traded options that the date the option contract expired was the date that the assignment was made considering what the strike was and where the equity price ended at close of the ending expiration date, however numerous times, like tonight I was assigned shares before the expiration... I have a trade that expires tomorrow October 4th, tonight I found out I was assigned 1 out of those 2 contracts. I called them and they said that in the American option markets you can be assigned at anytime where as the European options markets your contract assignment, if there is one, happens on the day of expiration ... So yea you can be assigned at any time.....im sure there are others here who have traded options have had this happen to them as well. This is something they don't tell you until you find out on your own....
That's why the calls I have sold against some stocks I tend to roll outward....there have been 2 equities trade where I sold calls, the stock jumped and because I didn't want my shares called away I have been rolling them out for addition premium credit every 2 to 3 weeks. Right now i have collected some decent credits....Sometimes I'll roll out and up once I can catch a bit of premium so if I am called away before the contract expires I can make a few extra dollars in premium and on stock price advancement...
When does the stock go Ex Dividend?? Do you understand why one would exercise an option early as it relates to dividends??
No they cant. The exercise cutoff time of 530pm applies to everyone. The OCC did have some exceptions for extreme circumstances, such as mistakes from a broker, but it was not easy to do and brokers needed to jump through a lot of hoops. Was not meant to give broker dealers an advantage. Even these have been tightened up after stock settlement change took place a while ago.
Are you 100% sure about that? I asked my broker the very same question,and they did say there are cases where exercise can take place up till 8
https://www.sec.gov/files/rules/sro/ise/2010/34-61458-ex5.pdf Customers have until 5:30. Member firms have 1-2 hours to submit the customers' requests. I haven't done it since I was at the bank (a while ago). My guess is that at that time we could get into that 730 time frame.