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GM 1 Strike Puts
- Thread starter TM1982
- Start date
Well, it's still trading... Selling my puts and getting out.
Because the reaction of the stock increasing doesn't make sense. I realize people are covering shorts but still. It's also not clear if and when GM shares will halt trading and what happens to the puts if it does.
Sushi,
can you please explain how they're worthless??? not criticizing, I'm looking for your input. I don't understand how they'd be worthless, they're a contract that should increase in value as the stock drops, and it should...so what are you saying that I don't understand?
anyone else can pitch in here too.
can you please explain how they're worthless??? not criticizing, I'm looking for your input. I don't understand how they'd be worthless, they're a contract that should increase in value as the stock drops, and it should...so what are you saying that I don't understand?
anyone else can pitch in here too.
This guy is a lost soul - he mistakes this for a Yahoo message board. Not that elite is all that much better sometimes.
The puts will continue to trade in a closing only status. If you're short, you can buy. If you're long, you can sell. Additionally, you can exercise a long option position at anytime up to expiration if it makes economic sense.
If you are long the puts without the stock and you exercise the put, you will be short the stock in your account. You may be forced to cover depending on your brokers requirements. Thus, it would be better to buy the stock first on the OTC, then exercise.
The stock will continue to trade OTC and will likely be volatile until the 363 sale is final (Aug or Sept?). If you hold June or July expirations, you might consider your alternatives as GM may continue to trade somewhat irrationally. Nothing would lead me to beleive the common share holders will recover anything and it should go to the $0.05 range eventually.
The puts will continue to trade in a closing only status. If you're short, you can buy. If you're long, you can sell. Additionally, you can exercise a long option position at anytime up to expiration if it makes economic sense.
If you are long the puts without the stock and you exercise the put, you will be short the stock in your account. You may be forced to cover depending on your brokers requirements. Thus, it would be better to buy the stock first on the OTC, then exercise.
The stock will continue to trade OTC and will likely be volatile until the 363 sale is final (Aug or Sept?). If you hold June or July expirations, you might consider your alternatives as GM may continue to trade somewhat irrationally. Nothing would lead me to beleive the common share holders will recover anything and it should go to the $0.05 range eventually.
If you guys are unsure, just call the options clearinghouse: 1-888-OPTIONS.
Hey Desert, if you're long the put with strike price of $1, doesn't that give you the right to sell it to the counterparty that sold you the put at $1? So, you're saying that as long as the common is traded in the OTC market, you should be able to buy the common and sell it to the counterparty at $1. But, if you think the common is not going to be traded sometime in the future, then you should buy the equity now before exercising the put, correct? Ok, but, what's the clearinghouse for?
Hey Desert, if you're long the put with strike price of $1, doesn't that give you the right to sell it to the counterparty that sold you the put at $1? So, you're saying that as long as the common is traded in the OTC market, you should be able to buy the common and sell it to the counterparty at $1. But, if you think the common is not going to be traded sometime in the future, then you should buy the equity now before exercising the put, correct? Ok, but, what's the clearinghouse for?