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Buying Puts on bad co. (1 viewing) (1) Guest
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TOPIC: Buying Puts on bad co.
#665
Northpro (User)
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Buying Puts on bad co. 11 Months, 2 Weeks ago  
Hi John,

I am sure you have covered this somewhere, but cant seem to find it in the lessons. I have bought a put option at the money on a particular company and there is now rumors that it could file for bankruptcy protection...what will happen to my now in the money put play if this happens. Would you recommend getting out asap.

Thanks
NP
 
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#667
Liviu_aussie (User)
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Gender: Male bratuliviu@yahoo.com Location: Melbourne, Australia Birthdate: 1977-02-16
Re:Buying Puts on bad co. 11 Months, 2 Weeks ago  
...check this out:

What Happens to Your Stocks or Options in a Bankruptcy
www.learningmarkets.com/index.php/200811...in-a-bankruptcy.html

Before You Invest in an Insolvent Stock:
www.learningmarkets.com/index.php/200812...insolvent-stock.html
 
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#668
Northpro (User)
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Re:Buying Puts on bad co. 11 Months, 2 Weeks ago  
thanks Liviu..

Looks like a better play would be to sell a 30 day call.

Cheers.
 
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