What happens to stock which is the subject of a loan and which is subsequently delivered against a call assignment or put exercise?

VIEW TRADE CONFIRMATION REPORTS

You will get a notice of the option assignment sent to your Message Center and your Trade Confirmation report will have the closing option transactions and any resulting stock transactions in the Trades section,…

If the short call leg of a covered write position is assigned, the long stock position will be applied to satisfy the stock delivery obligation on the short call. The price at which that long stock position will be closed out is equal to the short call option strike price…

In the event of any of the following, a stock loan created through the Stock Yield Enhancement Program will be automatically terminated in the event of:

• The client elects to terminate program participation
• Transfer of shares…

If you close a securities position which resulted from an option assignment on the date it was assigned to your account, it will be considered a day trade.  Similarly, if you close a securities position which resulted from an option exercise on the date it was exercised to your account, it will be considered a day trade…