Never actually done this in the real world and have read conflicting data online. Could not find definitive language either. But lets say you sold naked a bunch of puts at the strike of $20 with an expiration nearly 2 years from now. It is then announced that the company is being bought and taken private for a price of $25 per share and this deal is expected to close in 6 months, well before the expiration of your short put position. What happens to your position? Seems a little too good to be true that you would pocket the whole premium.