Long Put deep ITM at expiration

What happens at expiration when Long Put is deep ITM, but there is no underlying in the account, and trader does nothing?
Will it be auto-exercised by the OCC, like it happens with Short Puts?

But auto-exercise in this long Put case means that one has to sell the underlying to the other side.
But as said, what if there is no underlying in the acct and trader is on vacation or so?

 

You'll have a short position in the underlying @ the strike price.

 

But I wonder how this is going to work when it's a cash acct?
I was thinking stock shorting is not possible in a cash acct. Or is my this assumption perhaps wrong?

 

Auto-liquidation at a horrible price.

 

The option, or the stock?

 

Check with your broker.

ITM options will become shares of stock under the broker's street name. The process exception occurs when they try to assign that short to a cash account.

Maybe they have a gnome in the basement validating soon to expire options and will liquidate the option. They do watch pin risk. Who knows.

 

I'm goint to open a support ticket. Hope they will answer till Friday...

Hmm. And what happens then?

Hmm.

 

Just like many people have said, you will end up with a short position in your account. Since you don't have any underlying so you will be in a naked short position and if the price ever increases during your vacation, then you will be short-squeezed and you will end up losing money. Have a good vacation!!

 

It's a cash account so the position will be liquidated prior to that.

 

This is why you won't be allowed to trade options in a cash account because you won't be allowed to short the underlying. I have advised you so many times in the many threads that you created arguing why options cannot be traded in cash accounts and only margin accounts.