What Happens If My Covered Call Is Assigned Early?
If your covered call is assigned early, you’ll be required to sell your 100 shares at the strike price — even before expiration.
Early assignment typically occurs:
Near ex-dividend dates
When the option is deep in-the-money
When there’s little time value left in the premium
It’s not always bad — you still keep the premium and likely sell at a profit.
📊 Example Trade
TSLA @ $368
Strike: $380
Premium: $12.10
DTE: 30
👉 Run this in the calculator → https://bit.ly/tsla-call
🙋♀️ FAQ
Q: Do I lose money if I’m assigned early?
A: No — in most cases, you still profit, just less than if the option had expired worthless.
Q: Can I avoid early assignment?
A: You can roll the option early, or avoid selling calls just before dividends or earnings.
Q: What happens after assignment?
A: You no longer own the stock, but can re-enter with a new trade or cash-secured put.