So here is my situation, on Monday (6/2) I did a (sell put) on PLTR with an exeration on (6/6) 1 week long contract, with a strike price of $30.50. on 6/6 the PLTR closed at ~$30.2. which means the stock had to be assigned to me ( I do have the calateral to buy the stock for the amount of contracts I bought). Then around 11pm my contract was voided! In this sinario this would of benefited me bc after market the stock went up to ~32.70. I would collect my premium, plus the amount I would of sold the stock if it was assigned to me. In this scenario I would of benefited greatly. With my scenario, why was my sell put voided? FYI I did collect my premium
I'm using Robinhood.
My (sell put) was not assigned to me
byu/mystery_Turtle_XIX99 inoptions
Posted by mystery_Turtle_XIX99
1 Comment
The owner of the put submitted CONTRARY instructions to the OCC. Thus, he/she did not want to exercise the option via automatic exercise (0.01 in the money).
As you mentioned the stock went up to $32.70. So why would someone want to sell PLTR to you (via exercising a put) at $30.50 when they can get $32.70 for the stock?
One of the problems with Robinhood is that they like jumping the gun on option exercise and assignment. In reality, they will never know if any of the short options will be assigned until AFTER the OCC notifies them.