Assignment day, hour by hour
Assignment is your broker telling you that somebody exercised an option you sold, so you now have to do what the contract says. On a short call that means delivering 100 shares at the strike. You find out after it has already happened, usually overnight, and once the closing bell has gone there is nothing left for you to decide.
The mechanics are not complicated. They are just invisible, which is why the first one feels like something went wrong.
The position, in its last week
You have been short one UBER October 17 $72.50 call since September 5, sold against 100 shares when the stock was $68.40. The credit was $153 and it has been yours since the day it landed. Here is the final week.
| Day | UBER | Days left | Call | Of which time value |
|---|---|---|---|---|
| Fri Oct 10 | $71.20 | 7 | $0.74 | $0.74 |
| Mon Oct 13 | $71.80 | 4 | $0.67 | $0.67 |
| Wed Oct 15 | $72.60 | 2 | $0.75 | $0.65 |
| Thu Oct 16 | $72.30 | 1 | $0.39 | $0.39 |
Thursday night the contract is worth $39 and the stock is twenty cents under your strike. You go to bed with no idea what Monday looks like, which is the correct amount of certainty to have.
4:00 p.m. Eastern, Friday
The stock market closes. UBER's last regular-session print is $72.49.
One cent under the strike. Your call has no intrinsic value and no time left, so it is worth nothing, and the credit is clean. That is the story you tell yourself at 4:01.
4:00 to 5:30 p.m. Eastern
Trading is over. Exercising is not.
OCC / Options Industry Council, Options Exercise FAQ puts the exchange cutoff for receiving an exercise notice at 4:30 p.m. Central, which is 5:30 Eastern, and warns that most brokerage firms set an earlier one of their own. During that window the holder of your call can look at where UBER is printing after hours and decide to exercise anyway, even though the option finished out of the money. They rarely do. They are allowed to.
Your broker's internal deadline is the one that would bind you, if you were the holder. As the writer you have no deadline, because you have no decision. You are the one being acted upon.
Overnight
OCC exercises what needs exercising. OCC / Options Industry Council, Options Exercise FAQ sets the threshold at $0.01 per contract in the money, applied automatically unless somebody instructs otherwise, which is why the industry calls it exercise by exception.
Then it allocates. OCC / Options Industry Council, Options Exercise FAQ describes the mechanism plainly: OCC randomly assigns exercise notices to its clearing members, who in turn assign their own customers. There is no queue. Seniority does not exist. Being early, being large, being a good customer, none of it moves you up or down a list, because there is no list.
The allocation runs on net positions after the close, so a customer who was short ten of these and long two is short eight for the purpose.
Saturday morning
This is when most retail traders find out. The notice is already a fact by the time it appears, and it appears in whatever channel your broker uses: an email, a message in the platform, a line in the activity log that was not there Friday.
Check it. People who do not check it spend Sunday assuming they own 100 shares and Monday discovering they do not, or the reverse, which is worse.
Monday
UBER opens at $71.10 on a downgrade.
Two accounts, depending on what happened Saturday.
| Branch | Shares | Stock value or proceeds | Premium | Total |
|---|---|---|---|---|
| Assigned | gone, sold at $72.50 | $7,250 | $153 | $7,403 |
| Not assigned | still 100 | $7,110 | $153 | $7,263 |
A hundred and forty dollars, decided by a penny, resolved while you were asleep. And it went the way you did not want: keeping the shares was the expensive outcome. That is pin risk, and it has its own page.
When the shares actually move
The exercise carries the trade date of expiration, and the stock leg settles on the normal cycle. SEC, New "T+1" Settlement Cycle: Investor Bulletin covers the change to T+1 in May 2024, so a Friday expiration settles the next business day rather than the one after.
What that means in practice is that your Monday screen can disagree with itself for a few hours. Cash pending, shares still displayed, buying power already adjusted. None of that is an error and none of it is worth a phone call before lunch.
What you could have done
Before 4:00 on Friday: quite a lot. Buy the call back, roll it out, sell the shares yourself and let the call go. All of it available, all of it costing something.
After 4:00: nothing. There is no appeal, no negotiation and nobody to call. Assignment is not a decision made about you by a person. It is a random draw run by a clearing house that has never heard of you.
Which is the argument for having decided on Thursday.
OptionsKing scores every candidate strike on a deterministic 0 to 100 scale, blends that score with the return on the capital the trade ties up, and shows you the highest-ranked handful. There is no minimum score. How it works covers what the ranking does and does not tell you.
Questions people actually ask
When do you find out you have been assigned?
Usually overnight, and for an expiration Friday that means Saturday morning. The notice reports something that has already happened. There is no window in which you can contest it or hand it back.
Can I do anything to avoid assignment once the market has closed?
No. Your last chance to act was the closing bell. After that the option is either exercised or it is not, and OCC allocates the notices randomly among clearing members who then allocate to their own customers.
Does my broker choose who gets assigned?
Your broker allocates among its own customers, after OCC has randomly assigned the notice to the broker. Some firms allocate randomly and some by a first-in-first-out rule they publish. Neither gives you a way to influence the outcome.
When do the shares actually leave my account?
On the normal settlement cycle for the stock trade, which has been one business day since May 2024. A Friday expiration therefore settles Monday, and your account display can lag the event by a few hours.
Sources
Rules and thresholds above were checked against these documents on August 4, 2026. Exchange and broker rules change. Confirm anything you are about to act on with your own broker.
Keep reading
Do the math on your own trade
Every price in this article is an illustrative worked example, not a quote. Read Assignment and expiration for the rest of the series, and the disclaimer before you act on any of it. Selling options carries real risk of loss, and the loss can be far larger than the premium you collected.