Is it possible to opt out from option assignment?

Discussion in 'Options' started by thecoder, Nov 19, 2021.

  1. traider

    traider

    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.
     
    #21     Nov 19, 2021
    rb7 likes this.
  2. traider

    traider

    You can also try Goldman. I heard they never get assigned even though its supposed to be random.
     
    #22     Nov 19, 2021
  3. rb7

    rb7

    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.
     
    #23     Nov 19, 2021
  4. ajacobson

    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
     
    #24     Nov 19, 2021
    thecoder likes this.
  5. 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.
     
    #25     Nov 19, 2021
  6. thecoder

    thecoder

    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.
     
    #26     Nov 20, 2021