I sold a $1.50 put. It expired ITM. I was assigned the stock then. My purchase price is listed as $1.50 per share. Shouldn't it be $1.50 - the premium?
The purchase price is ALWAYS ALWAYS the strike price of the option when it's assigned. $1.50 - premium is your net cost.
Every composition I read said you get the shares at the strike price minus the premium. Seriously every single article says this. When I worked the numbers, I figured this would be the case. Like, it looks like I got the $15 and then I purchased the shares at $1.50. Stock was SNDL, put was $1.50 for $0.15. Shares were purchased at $1.50.
You're basis is the strike minus the premium of .15 so you are long the stock at a basis of $1.35 or strike minus the premium collected. I think this is how to look at it.
There is no way any books or any articles would tell you when you get assigned on your put, you purchase the stock at strike - premium. The purchase price is always just the strike. Strike price is what you get the shares at for puts and for calls, the strike price is what you sell(short) the shares at. The premiums is how much you sold or wrote the options for. Two different prices. What the books and the articles might be talking about is your PROFIT/LOSS for puts after assignment which is strike - premium. But you always always get the shares at the strike (plus any commissions too if your broker charges you for assignment) for puts. Feel free to show us the books and the articles that you read where they state that you get the shares at the strike price minus the premium. We will be happy to take a look at them.