If I write a naked call option which gets exercised early, will I have a chance to purchase the stock to cover the call or will I already owe a stock borrow fee by the time I am notified of the assignment?
- On Monday I sell a call option
- On Monday night the purchaser exercises his call
- On Tuesday morning I am notified of the assignment, making me short the underlying stock at the strike price
- On Tuesday afternoon I buy enough stock to close the short position
Do I owe a stock borrow fee for the Monday-Tuesday overnight short? Or does my short position start and end on Tuesday meaning that I never had to borrow the stock at all?