Early assignment occurs when the owner of an option contract exercises it before the expiration date. This means that if you’re short an options contract (either a call or put), you may be required to fulfill your obligations as the seller of the contract before the expiration date. If you have sold a put, you could be called upon to buy 100 shares at the strike price. If you have sold a call, you could be forced to sell 100 shares at the strike price. Why Does Early Assignment Happen? Technically, an option can be assigned at any time. However, it tends to only happen when the option is in-th…