if yesterday you had -3 calls on XOM and the client exercised, today you'd have 0 calls, -300 XOM, and whatever 300*the strike price in cash.
What about a naked put that I wrote. Let's assume that it is in the money for the person who bought the put, for example 1 point below the strike price that I wrote it for, do I get assigned the stock, or do they just take money out of my account, on expiration?
You will (most likely) be assigned. Friendly warning: if it's barely ITM, the option *may* be abandoned without exercise, and you won't find out until the next day. Similarly, if it's barely OTM, the option may still be exercised... (at least in futures; not positive about equities).
Yes. You can always carry a short stock position - but only when your broker can borrow the shares. Plus - some brokers charge you a fee to carry short stock, so be certain to inquire about the specific stock - preferable before you are assigned. Mark
0k.....here is an example you get assigned to deliver the stock and you do own the stock how does the borrowing mechanism work in order for you to deliver the stock?!
It's kinda like which came first, the chicken or the egg? It's neither. It's the one smoking the cigarette.
scientists say that the EGG came first. About 2 million years ago a bird laid an egg with muted genes and the chicken was born..........
EGG came first, Aliens used the Earth as a giant Petri dish and dropped off 1 egg to see the effects from far away. Aliens are laughing at the idiotic things we do on a daily basis and now we are being broadcast on all the galactic cable networks for pay per view.