What Is “Being Assigned” on a Short Call Option?

Being assigned means the seller of the short call option is obligated to sell the underlying asset at the strike price to the option buyer. In a covered call, the seller already owns the asset, so they deliver it.

This usually happens when the option is in-the-money and near or at expiration, or if it is an American-style option that is exercised early. Assignment fulfills the contract obligation.