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.
How it works
- The underlying symbol's price will be IGNORED during this action, unlike the Option Expiration.
- The option entered will be expired at zero.
- 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
Step 2: Enter the option symbol that is being exercised early & the early assignment date.
Step 3: Entries will be generated that will 1.) Expire the option at zero, and 2.) Assign the stock at the option's strike price. Click SAVE to post these entries.
