Like it or not, assignment is part of options trading.
An option buyer has the right to exercise an options contract. Option sellers may be assigned exercised options contracts. Exercise and assignment are the two sides of the same transaction.
Sometimes positions go against you, and you are assigned shares of stock. Assignment is even a core part of some strategies (think: put selling or option wheel strategies).
Autotrading is not exempt from assignment. Remember, bots simply automate manual trading decisions and processes. There’s no way automation can eliminate potential assignment (the OCC’s process is random).
So, how do you handle assignment of a position in the autotrading platform? Here’s a step-by-step guide if you do not want to keep the stock.
Learn more about Options Expiration Protocol.