Borrowing stock for stock option

Example 1

You wrote a short call for HSBC Holdings(0005.hk). But finally, it was assigned. You can:

  1. Buy the stocks immediately for settlement.
  2. Borrow the stock for settlement and wait for a better price to buy back and return the stock (you must have stock borrowing and lending account)

Example 2

You bought a put for HSBC Holdings(0005.hk). But today is the expiry date of the option you can:

  1. Roll over the option to an other period.
  2. Exercise the contract and borrow the stock for settlement and wait for a better price to buy back and return the stock (you must have stock borrowing and lending account)
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Stock Borrowing and Lending (SBL)
Tel : (852) 2277 6622
Email : sbl@phillip.com.hk

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