Last week I was assigned on Nio and ardx. I was happy with this as wanted to own the stock but I was delighted to see that I paid less than the strike price for both.
The Nio cost 5.32 per share and the ardx cost 7.71 per share. That was great for me but I'm confused as to why I paid the lower price. I thought I would have to pay $5.50 and $8 respectively.
Do you always pay the market value on expiration?
I would attach screenshots but not allowed.
NIO240517p5.5
ARDX240517p8
Assigned on CSPs at price lower than strike
byu/ddalala inoptions
Posted by ddalala
2 Comments
When you are assigned stock from a short put, your cost basis is the strike price less the put premium (a handy tax deferral). You should have paid the strike price, though.
What were the credits for each trade?
When subtracting them from the strike do they by chance add up to these per share prices?