Let's say I sold a TSLA put for 2$. If the underlying price moves up, I can buy it back when reaching 50% percent and collect 100$.
What happened if the price moves up and I don't buy it back, do I get assigned ? or the options expires with me collecting 200$ profit ? Thanks

  • Please add numbers to your question. What is the strike price, what is current? In general, it makes only sense to exercise the put if the price is below the strike price. So if you end up with TSLA priced above the strike there is no need to buy back the put
    – Manziel
    Jul 5, 2021 at 8:49

1 Answer 1


If TSLA is at or above the strike price on expiration day, your put will expire worthless and your profit will be $200. Note that although unlikely, since this is an American style option, you can be assigned at any time so it's possible that if TSLA trades below the strike price between now and expiration, you'll have early assignment.

If TSLA is below the strike price at expiration, your put will assigned and you will buy 100 shares at the strike price. Your net cost will be the strike price less the premium received. Whether you have a gain or a loss will depend on the price of TSLA at that time.

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