naked short call option - question on assignment & share delivery

A

adamchubb

if i have a naked short call position, the option expires in the money and is assigned. i will have to deliver the underlying shares. since i don't own the shares, i will have to buy them in the market.

my question is shall i just buy the shares on the same day the option expires in order to fulfill the shares delivery obligation???

TIA
 
yes you're right. i miss that point.

how about if the option is assigned before expiry?? can i just buy the shares after i receive the assignment notice?? i guess the earliest i can buy the shares is the next trading day after i receive the notice. i wonder will i be short of shares for delivery.
 
adamchubb said:
yes you're right. i miss that point.

how about if the option is assigned before expiry?? can i just buy the shares after i receive the assignment notice?? i guess the earliest i can buy the shares is the next trading day after i receive the notice. i wonder will i be short of shares for delivery.
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yes, you'd be buying to cover the shares you're short.
 
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