Am I at risk of early assignment on this short option?
Check What's True Right Now
Check every statement that's currently true for the short option you're holding.
Your Result
Check the statements that apply and click Check Assignment Risk.
How this is calculated
Each checked statement adds one point, out of 6 possible points. These are the conditions options textbooks and exchanges associate with a higher likelihood of early exercise by the option holder, not a formula that predicts any specific holder's decision.
0 to 1 points reads as Low, 2 to 3 reads as Moderate, and 4 or more reads as Elevated assignment risk.
The single biggest factor is usually extrinsic value near zero combined with the option being in the money. Once there's little time value left to lose, an option holder has less reason to keep holding instead of exercising.
Dividend-driven assignment mainly applies to short calls: a holder may exercise early to capture a dividend if doing so is worth more than the extrinsic value they'd give up.
This checklist cannot predict what any individual option holder will actually do. American-style options can be assigned on any business day for any reason, regardless of how many of these boxes are checked.
Risk & liability disclaimer: This tool is an educational self-check checklist only. It reflects general, commonly cited conditions associated with early options assignment and cannot predict or guarantee whether any specific option will be assigned. It is not financial advice. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, options clearing corporation, or data provider. Always verify your specific contract's exercise style and assignment risk with your broker.
Know the Risk Before the Holder Decides
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