Availability of proceeds from the exercise of a long put

Question

If I bought a put option in a cash account, it expired ITM and was exercised automatically on Friday, could I use the proceeds on Monday or would I have to wait T+2 working days until Wednesday for settlement?

Bob Baerker · Answer

Since it's a cash account, my assumption is that you own the stock and that when the long put is exercised, you sell the stock.  The proceeds will not be available for two days since settlement is T+2.
If you don't own the stock, Houston, we have a problem (shorting in a cash account).

Availability of proceeds from the exercise of a long put

One Answer

Add your own answers!

Ask a Question