What Is the Difference between Expiration and Assignment? ⎊ Path

What Is the Difference between Expiration and Assignment?

Expiration is the date when the option contract ceases to exist. Assignment is the process where an option seller is obligated to fulfill the terms of the contract (buy or sell the underlying) when the option buyer exercises their right.

Assignment occurs upon exercise, which can be before or at expiration.

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Glossar

Assignment

Obligation ⎊ Assignment in options trading refers to the mandatory fulfillment of the contract terms imposed upon the option seller, or writer, when the buyer chooses to exercise their right.