Shorting put option - what happen when they expire?
If I short a put route, and it expires out of the money - do I only draw from to hold the dosh? i don't hold to re-buy it on the finishing morning or anything, right?
Answers:
On expiration weekend you will see the short shares removed from your tale and the lolly deposited into the acct. You would not want to buy cover it since you will be charged commission which will lower your gain on the investment.
If a choice will expire contained by the money you will be exercised over expiration weekend. The short selection will be removed from you statement and you will be long the shares of stock at the strike price of the remedy. If you do not own the funds called for surrounded by your report to hold the position near will be a Margin nickname issued on your side on Monday morning. You can assuage this christen by selling the stock and taking the loss during the open market hours. Depending on your exposure you may know how to hold the shares longer, it will depend on the side-line department of the brokerage house. If here is glorious expose they will market you out Tuesday morning at the flea market if you did not pilfer handling on Monday's marketplace session.
Right, if they expire out of the money consequently the ethnic group holding the option wouldn't want to exercise and you're within the clear. You procure to hold the way out premium, but you would hold gotten to save that irregardless of whether the chance expired within or out of the money.
Rule #1 in option trading:
NEVER SELL NAKED PUTS
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Answers:
On expiration weekend you will see the short shares removed from your tale and the lolly deposited into the acct. You would not want to buy cover it since you will be charged commission which will lower your gain on the investment.
If a choice will expire contained by the money you will be exercised over expiration weekend. The short selection will be removed from you statement and you will be long the shares of stock at the strike price of the remedy. If you do not own the funds called for surrounded by your report to hold the position near will be a Margin nickname issued on your side on Monday morning. You can assuage this christen by selling the stock and taking the loss during the open market hours. Depending on your exposure you may know how to hold the shares longer, it will depend on the side-line department of the brokerage house. If here is glorious expose they will market you out Tuesday morning at the flea market if you did not pilfer handling on Monday's marketplace session.
Right, if they expire out of the money consequently the ethnic group holding the option wouldn't want to exercise and you're within the clear. You procure to hold the way out premium, but you would hold gotten to save that irregardless of whether the chance expired within or out of the money.
Rule #1 in option trading:
NEVER SELL NAKED PUTS