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Suppose in NASDAQ i sell APPL equity put option of week and that option became ITM then would this option will settle in cash or physical delivery of stock?

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Equity options settle with the underlying.

Index options are cash settled.

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  • Exactly, i.e. OP wakes up over the weekend to 100 shares AAPL and a potential margin call. Aug 16 '20 at 18:44
  • That's a possible scenario unless he has the margin to carry the position. A riskier outcome is that the assignment of the short leg of a spread occurs at expiration and he wakes up with far greater directional risk since he now has a long position in the underlying and the protective leg has expired. Aug 16 '20 at 18:56
  • so, if this Friday my sell put option expires in ITM and I have sufficient cash balance in my account then on Monday in my equity holding I will have that quantity of shares? (is my understanding correct?) Aug 17 '20 at 6:08
  • Your understanding is correct. Aug 17 '20 at 10:53
  • one question please as my put option is ITM on friday...if at the eod on friday if i sell next week call option ATM to get premium considering on Monday i will have shares in my account, is this logic correct? Aug 17 '20 at 18:30

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