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What Happens When You're Assigned an Option? (Yiddish)

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Chaim Ekstein | Git Gelt Podcast avatar
Chaim Ekstein | Git Gelt Podcast

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My in lesson explain option exercise [music] determined lot expiration. So assignment options [music] [music] statistics. So what's mind assignment and what's mind exercise the co options contract exercising the contract the seller obligation was when >> [music] >> options. Call options put options. Call a call option. price from the shares. The buyer $500 is dollar. So this is by call option [music] put option the strike price option $100 strike price [music] options. options. So do American style options and so do European style options. [music] American style options come and exercise any time before expiration. [music] actually [music] an assignment on the shares. So in the money based of them when the option is deep in the money style options exercise. By the way, SPX, [music] which is basically options market index, S&P 500. S&P [music] is a cash settled option. in the money [music] shares. The S&P the index S&P 500 index [music] the European style options assigned Cash settled. Option broker is obligated consequences. So a margin call for them. with cash [music] management assignments. [music] So the stock price amount the strike price is strike. So the risk assignment unexpected expected [music] prepared for usation assignment [music] and exercise. Please likes the video and any comments and access to them YouTube.com/blog