I have some short positions on DITM call options but underlying is non-shortable stocks. What would happen if I get assigned?
I've never heard of non-shortable stocks. But, if you do get assigned a short position, I'm guessing the option will be cash settled and you will be debited the difference between the strike price and the settling price of the underlying..... I would double check though...
As a general rule you can expect upon getting assigned that you will be short the stock. It will not be "cashed settled" and it will be up to your broker how they handle your short position just like any other. (for example you may have gone short a stock before it went on SHO list) Being short a stock you will always face the possibility of being required to buy it back at a time you don't want to. Selling ITM calls and buying ITM puts is a method to get short a stock that you would not otherwise be able/allowed to short.