option assignment

Discussion in 'Options' started by Wil Klem, Apr 14, 2016.

  1. Wil Klem

    Wil Klem

    If I am holding an open long position and choose to assign the position, is it guaranteed that it will happen? Roughly how long does it take for the transaction to settle? Does open interest come into play?

    Thanks for your replies.
     
  2. rmorse

    rmorse Sponsor

    If you exercise today, you will see your stock position tomorrow. Open interest is only relevant to the side that gets assigned. Not an issue for you.
     
  3. Wil Klem

    Wil Klem

    Thanks for the quick reply. This checks one more thing off my things to understand list.

    Is the commission on the assignment the same as any other trade?
     
  4. rmorse

    rmorse Sponsor

    Broker dependent. Some brokers charge the same as a stock trade. Some charge a line charge. If it is a retail broker, my expectation is that they charge a fee per strike. If it's 1000 contracts or 1 contract it will cost the same. You have to ask.
     
    Wil Klem likes this.
  5. Wil Klem

    Wil Klem

    Thanks again. This will be one of the questions for me to ask when I move from paper trading to opening a trading account.
     
  6. rmorse

    rmorse Sponsor

    IF it is a retail account, they post these fees online.
     
  7. Wil Klem

    Wil Klem

    gotcha