Options- Please assist

These are the rules of physical settlement.

  • If you are Long Call and it Expires ITM you will receive shares.
  • If you are Short Call and it Expires ITM you will have to deliver shares.
  • If you are Long Put and it Expires ITM you will have to deliver shares.
  • If you are Short Put and it Expires ITM you will receive shares.

So in your case, if you Sell Call you won’t receive shares if it expires ITM, you will have to deliver those shares. Same will happen when you Buy Put, if it expires ITM you won’t receive shares you will have to deliver them, In case options expire OTM they expire worthless and there is no obligation to receive or deliver shares.

If you want to receive delivery of shares you will have to either Buy a Call option or Short a Put option and they will have to expire ITM.

You can, read more here.