Cash Secured Put Assignment: Exactly What Happens When You Get Assigned (2026)

When your cash secured put gets assigned, your broker automatically uses your reserved cash to purchase 100 shares of the underlying stock at the strike price. You keep the premium you already collected, which lowers your effective cost basis. The entire process happens overnight — you'll see shares in your account the next morning.

Step-by-Step: What Assignment Looks Like

Let's walk through a real scenario. You sold 1 NVIDIA $125 put for $3.20 premium ($320 total). NVDA dropped to $121 at expiration.

Day of assignment:

Your put is in the money ($125 strike > $121 stock price)

The put buyer exercises their right to sell you shares at $125

Your broker deducts $12,500 from your cash balance

100 shares of NVDA appear in your account

Your cost basis shows as $125 per share

Your actual economics:

Paid: $125.00 per share

Premium received: $3.20 per share

Effective cost basis: $121.80

Current stock price: $121.00

Unrealized loss: $0.80 per share ($80 total)

Without the put premium, you'd be down $4.00/share. The $3.20 premium cut that loss by 80%.

When Does Assignment Happen?

Assignment follows specific rules:

At expiration: Any put that's in the money by $0.01 or more is automatically exercised by the OCC (Options Clearing Corporation). You don't get a choice.

Before expiration (early assignment): Rare for puts, but it can happen when the put is deep in the money and has very little time value left. American-style options allow early exercise at any time.

Notification timing: You'll typically see the assignment reflected in your account before the next market open.

What Happens to Your Account After Assignment

The premium you collected when you sold the put is already in your account — it was credited the day you opened the trade. Assignment doesn't change that.

What Should You Do After Getting Assigned?

You have three choices:

1. Hold the shares. If you still like NVDA long term, keep the shares. You bought at an effective $121.80 — if the stock recovers, you profit.

2. Sell covered calls. This transitions you into the wheel strategy. Own 100 shares and sell a call against them to collect more premium. You might sell a $130 call for $2.50, generating additional income while waiting for recovery.

3. Sell the shares. If your thesis changed or you need the capital elsewhere, sell immediately. You'll realize a small loss, partially offset by the premium.

Assignment Fees

Most major brokers charge zero assignment fees in 2026. Schwab, Fidelity, and Interactive Brokers all handle assignment at no cost. Verify with your broker, but fees are rarely an issue anymore.

Avoiding Unwanted Assignment

If you don't want to get assigned:

Close the position before expiration by buying back the put

Roll the put to a later expiration and/or lower strike

Set alerts on OptionsPilot to monitor when your put approaches the money so you have time to react

Assignment isn't a disaster. If you sold puts on stocks you wanted to own anyway, getting assigned simply means your plan worked — you bought the stock at your target price and got paid premium along the way.