I only buy puts. I now have a question about exercising puts. I am not able to exercise puts in my simulated account, so I wanna ask you guys & gals a question before I try it on my real account. Thanks for any answers that are inline with the question. P.S. I know most of the time it might not be profitable to exercise an option, but thats not the question.
Question: I am wondering if I exercise an ITM put option in an account that has zero positions open, will the put option exercise if I have adequate capital in my trading account? -is it not required for me to hold any shares long or short of the same ticker at the time of exercise? -So if I exercise 1 long put option, I will now be short 100shares at the puts strike price?