I'm a little new to the game and I got an e-mail saying "BASED ON AN ASSIGNMENT FROM OCC, YOUR ACCOUNT HAS BEEN ALLOCATED THE FOLLOWING ASSIGNMENT ON SHORT OPTION POSITIONS" I just picked up this position yesterday. Do I need to purchase the stocks myself to cover or will the prop firm do it for me? I bought puts in the money and the price went up a smidgen, I still get to keep the sale money to offset the shares I need to buy......right? I'm only going to take a small loss.
They will put the shares in your account automatically. Should have sold out of the money if you didn't want them.
Will they credit the account the sale price for those options? I don't understand? I bought a put in the money because I think the stock is going to move up.
You seem to be very confused. You didn't BUY a put you SOLD it, otherwise you cannot be assigned nor would a rising stock be beneficial to buying a put. You sold a put, you got assigned, now you are a proud owner of the stock (purchased at the strike). You keep the premium you sold those puts at. If you want to get flat then you have to sell the shares in the market.
I'm afraid when you sell naked puts you forfeit your right to a small loss. I hope you like the stock. Of course, as others have pointed out, stop trading before you lose your house/job/family. db
Correct, I sold the put. I apologize for the error. strike price @ $115 Stock price @ $90 I sold it for $25 Did I break even here?
I've been buying options on the side for years, successfully. I'm new to the selling side and I'm new to risk-based margin. Seriously, you're giving me a heart attack here.