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Early exercise happens when the owner of a call or put invokes his or her contractual rights before expiration. As a result, an option seller will be assigned and shares of stock will change hands. The Option Exercise/Assignment tool was implemented to allow superusers the ability to assign stock due to an early option assignment

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How it works

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  1. The underlying symbol's price will be IGNORED during this action, unlike the Option Expiration

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  1. The option entered will be expired at zero.

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  1. The underlying stock symbol will be assigned at the Strike Price of the option.

How to use the Option Exercise/Assignment tool

 

Step 1: Navigate to the Audit / Corporate Actions page.Visual Display of Option Assignment tool

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2: Enter the option symbol that is being exercised early & the early assignment date.

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3: Entries will be generated that will 1.) Expire the option at zero,  and 2.) Assign the stock at the option's strike price.

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Click SAVE to post these entries.Image Removed

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Related Topics / How To

Finding Corporate Action entries