What happens if the stock is halted for trading. But assuming that a halt continues through option expiration this month, can I exercise my put option into a short with the stock halted. If you have a specific question, especially regarding call option put stock trading halted procedures and rulings, you can telephone 1-800-OPTIONS and pose your question to a live OIC staff person. Trading in most stocks takes place without interruption throughout the trading day—but some stocks are subject to short-term trading halts and longer-term trading suspensions.
In rare instances when the market experiences a very steep decline, trading across the entire market can be stopped. This alert explains how, when and why interruptions in trading occur—and what investors can do in some of these situations. Trading Halts to Allow the Market to Digest New Company InformationWhen a company is listed on a U.S. stock exchange, including NYSE, NYSE MKT, NYSE Arca, the NASDAQ Stock Market and the BATS Exchange, it agrees to notify the listing exchange about any corporate developments that could affect trading activity in its stock—before announcing them to the public.
You can never tell when you will be assigned. Once you sell an American-style option (put or call), you have the potential for assignment to fulfill your obligation to receive (and pay for) or deliver (and are paid for) shares of stock on any business day. Buying these stocks or options on these stocks is not inherently a bad idea but this article will help you set expectations and prepare. Similar returns have been seen in General Motors (GM).