The assignment of an option to a writer when the writer does not yet wish to fulfill the terms of the contract. For example, for tax reasons, an option writer may want assignment to occur near the expiration. Unwelcome assignment is a possibility for calls when the underlying asset sells at or above the strike price, and it is a possibility for puts when the underlying asset sells at or below the strike price. Unwelcome assignment can be avoided by purchasing an offsetting contract and closing out a position. See also assign.
