Don't freak out over assignment

18:54 chatter: I have a dumb question when do you have to sell options? Is the second to last thursday of the month?
18:54 junky: you can sell options at any time.
18:55 chatter: I meant by when do you have to?
18:55 junky: u mean by expiration,
18:56 chatter: Yes
18:56 junky: even at expiration there are no requirements that you HAVE TO sell an option.
18:56 chatter: wont it expire if I dont?
18:56 junky: if its in the money at expiration and you do nothing you will just receive long or short stock come monday morning.
18:57 junky: if its out of the money, they will expire worthless. and no further action required.
18:57 chatter: ok but for this month experation I have till this thursday?
18:58 junky: what stock?
18:58 chatter: pot
18:59 junky: you had till Friday close.
18:59 junky: how much in the money (ITM) was it.
18:59 chatter: so since it was in the money then I jusr recieved the money so to speak?
19:00 junky: was it calls?
19:00 chatter: yes
19:00 junky: and did it finish ITM?
19:00 junky: what strike was it.
19:01 junky: holder of calls, have the right to buy stock at the strike price.
19:01 chatter: 190 or 195
19:01 junky: so at expiration, if the holder of itm calls do nothing, u are basically indicating that you would like to have stock delivered at the strike price.
19:02 junky: so come monday morning x number of long stock will appear in your account.
19:02 chatter: so now what do i do?
19:02 junky: how many calls
19:02 chatter: 5 contracts
19:02 junky: so 500 shares of pot.
19:03 chatter: yes
19:03 junky: you have 98k in acct to hold the stock?
19:03 chatter: no
19:03 junky: then just sell it after mkt opens.
19:03 junky: so you dont have to meet margin call.
19:04 chatter: ok so then everything is ok?
19:04 junky: you may want to contact the trade desk b4 the mkt opens, and I emphisize B4.
19:04 junky: bec. your acct will say something to the effect of insufficient funds come monday morning.
19:04 junky: dont freak out.
19:04 junky: just work with the desk.
19:05 chatter: ok it already does
19:05 junky: oh ok.
19:05 chatter: thats what freaked me out
19:07 chatter: I wont lose any money on this will I?
19:07 junky: depends.
19:07 junky: your stock cost basis is the strike price + whatever u paid for the calls.
19:07 junky: so it depends on where the stock opens monday morning.
19:08 chatter: got it. So I may loose a little depending on where it opens
19:08 junky: right.
19:08 chatter: got it thanks for the help.