Option assignment question.

Discussion in 'Options' started by TimtheEnchanter, Aug 31, 2020.

  1. Options trade on HTB stocks, so how do they assign short shares you the buyer the put option, if it is hard to borrow?
     
    Last edited: Aug 31, 2020
    newwurldmn likes this.
  2. guru

    guru

    You’ll get short those shares, but then it depends on the broker, stock, day - each case is different.
    Sometimes my broker let me keep such shares for a few hours, other times for several days, other times they may buy them back for me any time they choose.
    The broker at least must have some shares available to borrow to allow you keep them short, or generally needs to confirm to/follow Regulation SHO:
    https://www.investopedia.com/terms/r/regsho.asp
     
    Last edited: Aug 31, 2020
    BlueWaterSailor likes this.
  3. The (only) right answer is "call your broker and get clear on their policy".

    Having said that, this thread is worth checking out:

     
    guru likes this.
  4. FSU

    FSU

    If you are the seller of a put option and you are assigned, you get stock, you don't get short stock. The holder of the put who exercised gets the short stock.
     
  5. JSOP

    JSOP

    I think he meant he's the buyer of a put option. For some reason ET ate some of his words in the sentence.
     
  6. FSU

    FSU

    Ahh, ok. That makes more sense.
     
  7. socool

    socool

    Thank you for this
     
  8. BMK

    BMK

    That link to reddit is broken