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Anonymous

03 Sep 2021

∙

General Investing

IBKR Cash Account Selling Put

Hi, I am relatively new to option strategy and just have a question where if I am on IBKR Cash Account and I decided to sell a put option in which the premium is credited into my account immediately. My immediate question is can I even withdraw the premium I got into my bank account?

Also what would happen if I spent the premium (on other stock) and then the option gets exercised in which case I don't have enough to purchase the 100 shares?

Will IBKR liquidate my other positions or?

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Jovan Lai

04 Sep 2021

You will receive cash but also have margin blocked.

If you withdraw the cash and there is inadequate margin, your positions will be liquidated as per IBKR’s discretion

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saylavee

04 Sep 2021

You can try to withdraw but i doubt it will go through. If it does go into the money, the broker will liquidate your assets to buy the stocks in the event that you have insufficient funds. Worst case is they will make you take a loan to buy the stocks. Best not to sell naked puts unless you know what youre doing.

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Wake Up Your Dollar

04 Sep 2021

Yes, because you are obligated to purchase the 100 shares if it gets exercised....

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Hi, if i sell cash covered put options, do i need to keep the full amount of cash set aside (in case stock gets assigned) in the brokerage account?

If i open a new account with either IBKR or Tiger, may I know if this new account can use to sell my SGX shares held in my name in CDP and my USD stocks bought via Phillips Cash Management acct?

I make a mistake by selling a put option without enough cash in my account and I think its consider leverage.?

What will happen if I being assigned 100 shares by selling put but do not have sufficient money in my cash account ?

Does ibkr have an account minimum balance? i've a ibkr pro cash account and mainly deposit funds, then buy the stocks i want that night and usually my account cash fund balance is near zero afterwards. Any advice?

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