Hello, I have a put credit spread on MRNA 350/340 and I woke up to see the short closed and 100 shares of MRNA in my account. At the time of writing, MRNA is trading at ~$250 I do not want the long stock position. What are my options? Do I close out my long put and the long stock together? Thanks!
Doesn't matter where the underlying is trading. When you exercise your long, your stock will be assigned at a price 10 points below what you paid for it, so your total loss on it $10 less the initial credit per share. That's the point of defined-risk trades.
If it was the November expiration, just exercise your 340 puts. The only "extra" potential cost to you is capital charges for the long stock you held for the day. If you have a later expiration, there will be some extrinsic value in your 340 puts, so you would sell them and sell your stock (if you exercised, you would lose the extrinsic value.) You can enter this trade as a spread so there is no legging risk.