I am preparing to purchase a put for Bed Bath & Beyond, but I have no experience with option trading. What I want to happen is to purchase 1 put for $25 with a strike price of $5 and an expiration for September 9th. The underlying security is currently trading at about $9.50. My assumption of how things will work is I will exercise my option at or below the strike price, which this is the part where I have a question. When I exercise/sell the put contract in the money at or below the strike price, do I get 100 shares to keep until I decide what to do with them or will the contract give me 100 shares shorted at the price exercised from the underlying trading price of $9.50?
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