Assigned options settlement time

Discussion in 'Options' started by tonyf, Mar 30, 2021.

  1. tonyf

    tonyf

    Most US shares settle on T+2, or 2 days after a trade.

    How does it work with put options? If one is short a put expiring on a Friday, and the underlying equity is exercised/assigned to the seller: Does the seller hold legal tender on the Monday? i.e. will the seller gain title and voting rights on the following Monday or will it be on Tuesday (T+2)?
     
  2. JSOP

    JSOP

    I see the SPX index option is expiring on April 1, 2021 (hope it's not an April Fool's Day joke). Dunno if this is the same thing for equity options?
     
  3. This guy explains how it works with options.

     
  4. The buyer holds the right to exercise and you will get assigned and have the stock put to you especially if in the money and auto exercised. This takes a couple of days I think...