Newbie options question: Selling puts to purchase shares at a lower price

Discussion in 'Trading' started by tonyf, Jul 16, 2020.

  1. tonyf

    tonyf

    When selling a put, I understand that the buyer will have the option (but not the obligation) to deliver the shares if they trade at or slightly below strike price.

    Is there an instrument, a structure or a different type of option that would force the buyer to deliver the shares rather than granting them an option to do so, if I (seller of a put) would really want to own those if they were to hit the strike price?
     
    markteshorn likes this.
  2. guru

    guru


    They have such option at all times but usually it won't make sense to get the shares until the option's expiration date.


    Maybe barrier options: https://en.wikipedia.org/wiki/Barrier_option
    But any buyer or seller of options can simply close their position at any time and buy/sell shares. So if you want to have the shares delivered then buy the put back and buy the shares at the same time.
     
  3. tonyf

    tonyf

    Thanks for that Barriers are not available for the stocks on my watchlist. But I may look at writing barrier covered calls if IB allows it.

    A very basic question: Would you know how to assess the margin requirements in TWS for selling naked a put?
     
  4. ZBZB

    ZBZB

    Do the trade and a box pops up with the margin requirements before the order is transmitted.then cancel.