Assignment Risk
Definition
The risk that an option seller will be assigned and forced to fulfill the contract obligation (buy/sell the underlying).
Example
Short calls face assignment risk if deep in-the-money before expiration. 114 CRYPTO TERMS (Batch 2 – New) Ethereum Category: Crypto Definition: The second-largest cryptocurrency by market cap and the leading platform for smart contracts and decentralized applicatio
Frequently Asked Question
What is Assignment Risk in trading?
The risk that an option seller will be assigned and forced to fulfill the contract obligation (buy/sell the underlying).
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.