What is exactly happen after assignment notice in option sell condition??
You have to deliver shares in case you have written call and buy in case you written put.
Will ALL the ITM Stock Options (call or put) will be assigned 100% compulsorily on expiry day??
Or is there any chance that even ITM options will NOT be assigned for any reason???
CTM ie immediate 3 strikes in ITM buyers will have option to not to go for physical assignment, sellers won’t have any choice.
You mean that CTM Option Buyers (i.e immediate 3 strikes in ITM ) may or may not exercise their right
to buy/sell shares depending whether it is Call/Put.So,the option sellers in this CTM area may have a chance
not to be assigned. Other ITM option sellers will be 100% assigned without any omission.
Please confirm my view is correct???
Yes it is correct.
Thanks for your quick response