Puts on a company that goes down the tubes?

2 posts / 0 new
Last post
leadbrasssilver
leadbrasssilver's picture
Offline
Joined: 06/14/2011
Hat Tips: 194
Posts: 23
Puts on a company that goes down the tubes?

Just out of curiosity, what happens if you hold puts on a company that implodes? bear sterns, lehman, enron etc.

Edited by admin on 11/08/2014 - 06:16

__________________

Long Bankers, Short Rope. I love it when a plan comes together.

Epic
Epic's picture
Offline
Joined: 06/14/2011
Hat Tips: 3
Posts: 6
Check out these two

Check out these two links:

http://www.optiontradingpedia.com/what_happens_to_options_during_bankruptcy.htm

http://community.tradeking.com/members/optionsguy/blogs/18504-who-pays-for-selling-bankrupt-stock-options

However, make sure you read this about the risks of owning puts without actually owning the underlying stock:

http://whatheheckaboom.wordpress.com/2011/03/16/dangers-of-owning-puts-without-owning-the-stock/

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Topic locked
Syndicate contentComments for "Puts on a company that goes down the tubes?"