An assignment refers to transferring rights or property. Learn how assignments work in options contracts and see examples of assignments in mortgages, wages, and leases.

Traders have significantly more variables to account for when trading options over stocks. As an equity investor, only the fluctuation of the underlying affects the profit and loss of a position.

So your trading account has gotten options approval and you recently made that first trade—say, a long call in XYZ with a strike price of $105. Then the option expires, and at the time, XYZ is trading ...