How to Avoid Assignment Risk on Options
Reduce assignment risk with smart tactics and proactive management.
Key Risk Factors
Ex-Dividend Risk
Calls may be exercised early for dividend capture
Deep ITM Options
Low extrinsic value increases assignment probability
Prevention Tactics
- Monitor extrinsic value: Buy to close when extrinsic approaches zero
- Roll before ex-dividend: Avoid dividend capture assignments
- Choose appropriate deltas: Lower delta = lower assignment risk