SPY 90 Put Now what?

Discussion in 'Options' started by asdfghj7, Nov 6, 2008.

  1. Today I sold a SPY 90 Put for 4.25 pts that expires November 21st. Assuming the market goes below 90 before then, and the option buyer exercises it, how will I know that I've been assigned 100 shares at 90? Once I'm assigned, am I then safe to sell a call against the 100 shares I'm long? How does IB let you know that the options been exercised? Thanks
  2. You should not be writing puts.

  3. why not just call your broker, problem solved.:)
  4. Access your IB account and you will have a message that the stock has been assigned. It will also show up in the Portfolio tab of the IB Trader Workstation screen.

    Yes, you can sell covered Calls on the stock that you own.
  5. IB does not specifically 'let you know.'

    There are two ways for you to learn whether you have been assigned.

    First, look at your daily confirmation statement that arrives via e-mail. Look at 'transactions.' If you were assigned you will see a trade that tells you you bought 100 shares (for each put) at a price of 90.00.

    Second, look at your position in the SPY Nov 90 put. If you are short the same number of contracts that you were short at the close of trading yesterday, then you were not assigned on any puts.

    NOTE: Do not expect to be assigned an exercise notice if SPY dips below 90, unless it goes far below 90. It would be a very (very very very) foolish mistake for the put owner to exercsise prior to expiration, so don't expect to see it happen.

    Yes, once assigned you own the shares and can safely write a (covered) call option for each 100 shares.

  6. SWhiting and Dagnyt. Thanks to you both.