Option Exercise/Assignment tool

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
 

1. The underlying symbol's price will be IGNORED during this action, unlike the Option Expiration.
2. The option entered will be expired at zero.
3. 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.

Related Topics / How To

Finding Corporate Action entries