Can I excercise a put option if I do not have the money to purchase the underlying amount of stock?
Answer:
With a put option, you force someone else to buy shares from you. You are the seller, not the buyer. You don't need any money. However, if you don't have the shares, you would have to buy them before you sell them. Your broker can coordinate it so that you are buying shares with the money you get from selling them.
Prior to expiration, you are always better off selling the option contract rather than exercising it, you get money for selling it -- so don't need to put up cash for that either.
You wouldn't want to exercise it anyways, it is worth more being sold as an option than it is exercised due to the time value of the option.
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You don't have to exercise the put option to take profit. In fact, if you exercise it, you are basically throwing away the remaining time value.
The best thing to do is to sell it. Just enter a sell-to-close transaction to sell it.
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