Submitted by silverwind18 t3_1267jql in wallstreetbets
silverwind18 OP t1_jeb07mf wrote
Reply to comment by CompetitionDouble420 in A few lucky coinflips... by silverwind18
Yes, in order to exercise a put option, you must have the underlying shares available to sell at the strike price. This means that if you don't already own the shares, you would need to purchase them at the market price in order to exercise the put option.
Note that most options traders close out their positions before expiration rather than exercising them.
CompetitionDouble420 t1_jeb4153 wrote
Assuming their positions are ITM, correct?
silverwind18 OP t1_jeb73ky wrote
Correct.
CompetitionDouble420 t1_jeb7829 wrote
I appreciate the info!
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