If you have to wait until the end of a trading day to cash in a put and the strike price was reached during th

Question

e day but the price went back up by the end of the day, are you out of luck? Did you lose that opportunity since the price per share at the end of the day was higher than your strike price?

I am talking about exercising or cashing in on a put buy

Answer 1

(1) You do not have to wait until the end of the day to exercise a put option.

(2) If you exercise the option in the morning and the stock price closes over the strike price when the market closes you will only receive the strike price.

(3) You can avoid the situation in (2) by waiting until the end of the trading session to exercise the option.

(4) If the stock price is close enough to the strike price you will almost always make more money by selling the stock and selling the option instead of exercising the option.