Exercise and Assignment
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Exercising calls
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Means you buy the underlying stock at the strike price
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Exercising puts
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Means you sell the underlying stock at the strike price
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The process for exercising your options is as follows:
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notify your broker
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your broker notifies the Options Clearing Corporation (OCC)
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the OCC randomly chooses a brokerage firm with the appropriate short options in the same class and series
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the brokerage firm randomly calls one of its customers with the relevant short options position and delivers an Assignment Notice informing them that the option owner has exercised their
right to buy (call) or sell (put)
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the stock transaction is processed