The Assignment Process Explained

Explore how assignment works - from OCC's random allocation to clearing firms and to how notices reach individual investors.

0:00 - Assignment Introduction
0:11 - Seller's Contractual Obligation
1:16 - Counterparty Risk Explained
2:04 - Seller's Obligations: Calls vs Puts
2:25 - Why Sellers Get Paid Premium
2:36 - Long-Term vs Short-Term Options Pricing
3:23 - Assignment Risk for Sellers
3:28 - Behind the Scenes: Assignment Process
3:36 - End of Day Trade Processing
3:47 - Opening Positions Allocation

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