EXPERT SERIES: Exercise vs. Assign – Options Lesson by Bill Johnson

EXPERT SERIES: Exercise vs. Assign – Options Lesson by Bill Johnson

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Hello Market Rebels!

Bill Johnson here, Lead Instructor at Market Rebellion.

Each week, I break down individual trading concepts via short video lessons to help you gain a better understanding of markets and how we trade stocks and options here at the Rebellion.

As many of you experienced traders know, options have rights and obligations. However, it’s only the buyers that have the rights. Call buyers have the right to buy shares, while put buyers have the right to sell shares.

But what if you do wish to use your option to buy shares? That’s where exercising come in. But in order to understand how it works, you’ll need to know the difference between exercising and assigning options.

Check out the video below to learn more!

Be sure to check back in on the Rebel Blog each week for video lessons like these, unusual options activity updates from Jon & Pete Najarian, informative how-to articles, and highlights on the latest market action.

Talk soon!

Trade Smarter,

Bill Johnson
Lead Instructor, Market Rebellion

About the Author: Bill Johnson has published 10 books on various financial topics including options, single stock futures, hedging, forex, and the Federal Reserve. He was a former adjunct professor teaching futures, options, and swaps at Florida International University in Miami (FIU). In a previous company, he created two online educational courses on options and single-stock futures with more than 300,000 students enrolling worldwide. Bill was also a regular host for a live financial radio show on WNN 1470AM in Boca Raton, Florida. From 1995 to 2000, he worked as a subject matter expert on an active trader team at Charles Schwab. He also taught weeklong courses in Option Strategies, Pricing, and Hedging to advanced brokers. Bill was selected as part of small team for Schwab’s first venture into the IPO market with Berkshire Hathaway Class B shares. Bill has had articles published in Active Trader, Buy-Sell-Hold, SFO (Stocks, Futures and Options), Smart Money, Forbes, Fortune, and Worth magazines and has also been quoted in Barron’s and the Wall Street Journal. He was also a guest speaker for the Option’s Institute Master Sessions at the Chicago Board Option’s Exchange (CBOE). Bill received a master’s degree in Economics in 1996 and an M.B.A. in Finance in 1999, both from the University of Central Florida.

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