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What Is the Risk of ‘Assignment’ in a Covered Call Strategy?

The risk of 'assignment' is the risk that the call option writer will be forced to sell their underlying asset at the option's strike price. This typically happens when the underlying asset's price rises significantly above the strike price, and the option buyer exercises their right.

The investor misses out on further upside price appreciation.

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Explain the Concept of “Assignment” for a Covered Call Writer
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