I've never been assigned and am curious as to how much cash I need during the process.
If I sold 10 Bull Puts on say BHP. Say Sell $30 and Bought $29 put and BHP closed at $28.50 after expiry.
Does the $29 bought Put cap the 10,000x$1=$10,000 cash loss from my account or do I need to go through the whole process of Excercising the $29 put and delivering the shares to the lovely person who excercised the $30 contracts.
If this is the case would I need $290,000 cash to settle this deal?
I know brokers vary, but is there a general consensus for most brokers