Assignment, exercise, and exit rules

The exit is part of the options trade, especially when expiry and assignment can change the obligation.

The boundary buyers miss

Options buyers and sellers face different rights and obligations, and an options signal can be misread if it does not state whether it is long premium, short premium, a spread, or an underlying position. Expiry, early exercise, assignment, and broker handling are not footnotes; they can change the position after the signal has been published.

What the record should show

Every options result needs an exit convention. Was the position sold, exercised, allowed to expire, rolled, or marked at a defined time? Was a spread closed as a package? If the record leaves that unanswered, a buyer cannot reproduce the claimed outcome or the maximum loss.

How to use the test

Use a written exit rule before entry. Record the option legs, the intended close, the time stop, and what happens when liquidity disappears. Keep open positions labelled open rather than quietly converting them into a settled result.

Bottom line

No signal service can remove broker rules, assignment risk, or the buyer’s responsibility for position management.

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