What does options assignment mean?

Option assignment occurs when the buyer of an option decides to exercise, putting the seller of the options contract in obligation to deliver on the contract. For example, if you have sold a call option and the purchaser of the contract exercises, you would be obligated to deliver the underlying shares to the buyer.

etoro’s policy is to close out in or near-the-money positions beginning at 3:30 pm ET on the expiration date. Although we will take action to buy to close such options, we cannot guarantee that the position will be closed, and therefore cannot guarantee the option will not be assigned. In addition, short options (or an option that was sold to open) are subject to random assignment. While this is rare, it is a risk to consider when trading short options.