What happens when you get assigned?

Covered Call
When you sell a covered call, you are agreeing to sell your shares at the strike price if the option holder decides to exercise their right.

To ensure you can meet this obligation, Webull EU reserves (or locks) the shares in your account while the option is open. The shares remain in your account, but they cannot be sold or transferred unless you close the option position.

If the option is exercised, you will be assigned and the reserved shares will be sold at the strike price.

Example:
You own 100 shares of APL at $150 each.
You sell a call option with a $160 strike price and receive a $2 premium per share.

Possible outcomes:
1. The stock stays below $160. 
The option expires worthless. Your shares are released, and you keep the premium.
2. The stock rises above $160.
 You are assigned and your 100 shares are sold at $160. You keep the premium but do not benefit from any price increase above the strike price.
Cash-Secured Put
When you sell a cash-secured put, you are agreeing to buy a stock at the strike price if the option holder decides to exercise their right.

To make sure you can meet this obligation, Webull EU reserves the required cash in your account while the option is open. This cash is set aside and cannot be used for other trades.

If the option is exercised, you will be assigned and the reserved cash will be used to purchase the shares at the strike price.

Example:
You sell a put on AAPL with a $150 strike price and receive a $3 premium.
Because each options contract represents 100 shares, $15,000 is reserved in your account.

Possible outcomes:
1. The stock stays above $150
The option expires worthless. The reserved cash is released, and you keep the premium.
2. The stock falls below $150
You are assigned and buy 100 shares at $150. You still keep the premium, which lowers your effective purchase price.
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