How Does the “Moneyness” of an Option Affect the Likelihood of Assignment?

The deeper an option is in-the-money (ITM), the higher the likelihood of assignment. An ITM option has intrinsic value, making it profitable for the holder to exercise.

Out-of-the-money (OTM) options are rarely, if ever, assigned early because exercising them would result in a loss for the holder. Assignment is virtually guaranteed for ITM options at expiration.