Quick Q&A to Resolve Your Options Confusion
How to Sell a Put Option (Short Put)?
Step 1: Go to [Individual Stock Quote Page] → [Options Chain] → [Single-Leg Options] → Select the specific [Expiration Date] and [Strike Price] → Click [Trade].
Step 2: Enter the [Trading Interface] → Set [Transaction Direction], [Transaction Price], [Contract Quantity], and [Order Type] → Click on the [Double Arrow Icon] to view margin requirements → Click [Sell].
Step 3: The position of sold options contracts can be found in [Positions] → You may [Trade] or [Roll Over] the contract.
Step 4: After successfully selling the option, the premium will immediately be credited to your account. You can enter the corresponding stock market account → Go to [Account Details] → Click [More] → Find [Fund Details] to view the cash flow from the sold option.
Tips:
1. Please note: The seller of a put option faces the risk of the buyer exercising the option; therefore, if the position is not closed, ensure that your account has sufficient margin/cash available for system exercise settlement.
2. Even if you take no further actions after selling the option, margin requirements may increase due to intraday market volatility; thus, it is recommended to maintain an adequate level of margin/cash in your account at all times.
Learn more:
What is selling a put option (Short Put)?
After selling a put option (Short Put), what are the available trading choices?