Everyone seems to say that assignment of exercised options is random; does it just appear random to an outside viewer or does the exchange pick a name from hat for assignment?

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    $\begingroup$ Yes, the exchange uses a random number generator. $\endgroup$ – Alex C Sep 10 '18 at 17:08
  • $\begingroup$ @AlexC Is there any available information about what kind of generator they use? Also, if you post that as an answer I will accept it. $\endgroup$ – chew socks Sep 10 '18 at 17:24

The exchange takes seriously its responsibility to assign exercises fairly. Typically it is a two stage process. The exchange uses a random number generator to assign the exercise among the brokerage firms they deal with. The brokerage firm is then responsible for assigning the exercise among its customers; generally they also use a random process. The exchange must approve and inspect the process used by the brokerage firm.

(I have never worked for an option exchange so I have no idea what kind of r.n.g. they use).

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    $\begingroup$ Based on the predictable bad luck I've had sometimes it feels like IBM's RANDU. $\endgroup$ – Attack68 Sep 10 '18 at 21:12

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