# Assignment

*Derivatives & Options — Finicade finance glossary*

Assignment is what happens to an option seller when the buyer exercises: you're obliged to deliver, buying or selling the underlying at the strike. It's allocated randomly among short holders by the clearing house, so it can arrive at any time on American-style options. The classic trigger is an in-the-money short call the day before an ex-dividend date, when exercising early to capture the dividend becomes rational.

**Also known as:** option assignment, assigned, early assignment

**Related terms:** [Exercise](https://finicade.com/glossary/exercise), [Early Exercise](https://finicade.com/glossary/early-exercise), [Covered Call](https://finicade.com/glossary/covered-call), [Cash-Secured Put](https://finicade.com/glossary/cash-secured-put), [Expiration](https://finicade.com/glossary/expiration)

Source: https://finicade.com/glossary/assignment