Message Font: Serif | Sans-Serif
No. of Recommendations: 0

I'm wondering about hits as I sold some Jan, 13 puts and the price of the stock is now below what I sold them for.

I would not mind at all taking ownership of the stock even at a lower price though I understand I will be at a loss if the options are exercised, or "put" to me.

What I am curious about is this. Lets say I sold the options for $1 and they expire in the money at $1.50.

If the stock is not put to me, and I have already collected my $1 when I first sold the puts, and they expire at $1.50, am I required to pay the .50 difference?

Or if it seems they are going to expire at that price closer to Jan expiration will the stock be put to me?

It seems to me since the options are now worth more and the stock price is below my strike the stock could be put to me at any time, just curious why it hasn't been, or is that common.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.