Noob question on selling puts- I just sold a weekly put that I WANT to get assigned. The stock fluctuate a few dollars a day so I’m looking for a specific price to own the shares at vs entering a limit order. The stock has already gone below my selected strike price by a 30 cents today but I haven’t been assigned the shares 🤔. Is it only by expiration day or am I missing something?

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Posting as :
works at
You are currently posting as works at

You’ve given the buyer of the put the right, but not the obligation to sell you the shares at the strike price by the expiration date. Doesn’t make sense to exercise early unless they are way deep in the money or the buyer needs to free up the capital / margin tied up in the underlying. The option still has time value left in it, so most people would just sell the option rather than give up that time value.

TL/DR: no one in their right mind would exercise an option early that is only 30 cents in the money.

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That makes sense- thanks for the explanation!

Just curious what stock is it?

MSFT

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You may want to read up on selling puts if you are choosing such a low IV and overbought stock. They are 2% off their all time high. And the premium you collect isn’t that high.

Do you have any recommendations?

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