4 months of active trading and still have a question ....

[taowave]

Just buy the stock and hope it gets taken over the next day

 

[Steve Alexander]

Appreciate any reply to this scenario pending.

This is generalized but applies to my situation.

XYZ stock price was $4.50.
Strong Sell recommendation.
I buy a $3.00 Put. One contract.
Stock price falls to $1.25. Low volume and zero bids for Puts at the $1.25 price point.
Should I enter a stock purchase order for 100 shares at $1.25 and then exercise my Put option to sell at $3.00
- or -
is there another possibility?
Thanks again.

There are many other options:
Don't trade options:
Don't trade stocks priced below $5 per share.
Let your option expire.
Etc.

 

[taowave]

I think he meant "smart" options