Random Assignments FAQ

The Random Assignments FAQs explain how option assignment works when you’ve sold an option contract, including the Options Clearing Corporation’s (OCC) random selection process, how Tradier notifies you, and what happens in your account after assignment. These articles cover potential impacts such as changes to your stock positions, dividend obligations, interest charges, Hard to Borrow (HTB) fees, and how Tradier may proactively take action to manage risk. You’ll also learn why assignments can’t be predicted with certainty, how corporate actions can change deliverables, and your rights and requirements if you want to exercise your own options.

What is a Random Assignment?What will occur in my account if I am randomly assigned?What notification will I receive if I am randomly assigned?Will Tradier Brokerage take action in my account?Is there any way to know if I will be assigned ahead of time?Are there any fees for option assignments/exercises?Can I proactively exercise my long options when I believe that I will be assigned?Can I exercise options on the day they expire?Do I pay interest when an assignment uses more than the cash I have available in my account?Could Hard to Borrow (HTB) Fees apply to stock that I sell short as the result of an assignment?Could I end up owing the stock dividend if I am assigned on short stock?What will Tradier Brokerage do if I owe a dividend?