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?


Equity options settle with the underlying.

Index options are cash settled.

  • 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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