When Are Funds Available After an Automatic Put Option Assignment?


When is money from a sold position available for trading in Fidelity and how does that compare to money availability for an assigned put?  The question about money availability is important for traders who want to take advantage of every possible trading day.  It turns out that both follow the T+2 timeline.  The T+2 timeline states that money from a stock sale is available on the second business day after the transaction.


For put options that are assigned, there’s the added step of declaring an put option as being assigned before the sale takes place.  Does this slow down the sale process?  It appears not.


While Fidelity reports the assignment and sale the day after the put option expires, it backdates the sale transaction to the date of expiration.


For example, if a SPY put option expired on January 26, 2023, its assignment would be logged the next business day (January 27, 2023).  However, the transaction is backdated to the date of the option expiration (January 26, 2023).  Funds from this transaction will be available in two business days after option expiration, in accordance with T+2.

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