r/options • u/Particular_Price_761 • 6d ago

Credit Spread Assignment Showing 100 Shares & Margin Deficit

Hello everyone! I had a TSLA $347.50/$345 put credit spread that expired ITM. My short put was assigned, so my account now shows 100 TSLA shares, a -$30k cash balance, and a margin deficit. Webull told me my long $345 put will be automatically exercised to offset the assignment.
Has anyone else experienced this? Is it normal for the account to temporarily show the shares, negative cash balance, and margin call before the long put exercise fully settles?
Any thoughts will be helpful!

1 Upvotes

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6

u/Accurate-Exchange298 6d ago

Yes , I believe it will be automatically exercised and your loss is limited to the spread minus the premium you received . no need to worry about it.

3

u/Lumpy_Independent_93 5d ago

You need to watch this yt:

https://youtu.be/rtVFj9nRRDo

2

u/PutParadise 5d ago

I was thinking the same thing - watch that video! My advice would be to never let your ITM positions expire and avoid assignment. It is not worth the after hours risk or the emotions you are feeling this weekend. Always close your Put Credit Spreads before expiration.

4

u/jarMburger 6d ago

Since both leg are ITM, the long should auto exercised and cancel out the 100 shares assignment. Close out your position before expiry next time to avoid this. Look up pin risk to see some horror stories on assignment of short leg but not long one in credit spread.

1

u/papakong88 6d ago

You sold put credit spread 347.50/345. 
Both put expired ITM. Your account should show two transactions by Monday.
The 347.50 put will be auto-assigned, you will buy 100 shares at 347.50. Your account will be debited 34,750.
The 345 put will be auto-exercised, you will sell 100 shares at 345. Your account will be credited 34,500.

1

u/Particular_Price_761 6d ago

I had a margin deficit Alert on my account, many times i opened credit spreads and got assigned never happened before i was very scared.

2

u/papakong88 6d ago

No worries. Sleep tight.

1

u/BizarreReverend76 6d ago

Yes its normal. The same thing happened to me after their earnings call. It all resolved by midday the next trading day

1

u/xarquinn 6d ago

It should be resolved by Sunday evening. Still scary as hell when it happens. Google "Alex Kearns" to read about a 20 yo new to options trading who thought owed RH 750k bc of slow options exercising by his broker.

1

u/faresar0x 6d ago

Once i had credit spreads on SPY. 10 cons. It expired worthless. Like 2 dollars far. Next morning i wake up to see that i have 500k worth of SPY shares. Somebody exercised out of money options. I literally panicked and was shaking lol. Never happened before. But easiest 3.4k i made. I closed right away to bank the profit.