Early Assignment Risk Checker
Sold an option? Check how likely an early assignment is based on how far in the money it is, how much time value is left, and any upcoming dividend.
Free and private: runs entirely in your browser, nothing is uploaded.
How to use
- Choose whether you sold a call or a put.
- Enter the stock price, strike, and the option's current mid price (halfway between bid and ask).
- Enter days to expiration and, for calls, any upcoming dividend and the days until its ex-dividend date.
How the check works
Early exercise throws away extrinsic value, so holders rarely do it while much time value remains. Risk rises as time value approaches zero, and for calls when a dividend is worth more than the time value given up.
Worked example Hypothetical
The default inputs: a short $95 call, stock at $105, option at $10.20, dividend $0.80 going ex tomorrow. Intrinsic $10.00, extrinsic only $0.20. The dividend is worth more than the time value, so the checker shows High risk. Closing or rolling the call before the ex-date would avoid being assigned and missing the dividend.
Assignment risk explained for beginners
What this tool does
When you sell an option, the buyer can exercise it early on US stock options, and you get assigned. This screen flags the common conditions that make that likely. Read the full guide: assignment and early exercise.
What to do with a High reading
- Close the short option, or roll it to a later date or different strike to add time value.
- If assignment is acceptable (as in the cash-secured put or wheel), make sure you have the cash or shares.
- On spreads, remember your long leg still protects you.
Common mistakes
- Using the last trade price instead of the bid-ask midpoint.
- Forgetting ex-dividend dates on short calls.
- Assuming out-of-the-money options can never be assigned. It is rare but possible.
FAQ
Can a short option be assigned when it is out of the money?
It is very unusual, because the holder would lose money, but it is technically possible.
Which matters for dividends, the ex-date or the pay date?
The ex-dividend date. A call holder must own the shares before the ex-date, so they exercise the day before.
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Not financial advice
This tool is for educational and informational purposes only. It is not financial, investment, tax, or legal advice, and it is not a recommendation to buy or sell any security or to use any strategy. All examples use hypothetical numbers. Options involve risk and are not suitable for everyone. Do your own research and consider talking to a licensed professional before trading.
Learn the strategy
Bull Put Credit Spread · Covered Call · How to Read an Options Chain