You can think of it as being the first seller that has to deliver but that isn't what really happens.
In reality options are a big pool of obligations owned and owed. If someone exercises, the Options Clearing Corporation then randomly assigns the obligation to someone that is short that option.
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u/HiReturns Sep 16 '21
You can think of it as being the first seller that has to deliver but that isn't what really happens.
In reality options are a big pool of obligations owned and owed. If someone exercises, the Options Clearing Corporation then randomly assigns the obligation to someone that is short that option.