RINO delisted, what happens to my put options?

Quote from spindr0:

And you would want to exercise "out of the money" puts why ???
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Based on delisting of FNM FRE and ABK, they lost 66% 2 quarters of value approx. so RINO should open at $2/share or so which is 33% of $6. If not, then I'm screwed.:p
 
Quote from FSU:

Because you would expect them to be "in the money" when the stock begins to trade. By exercising the Nov 5 puts you are selling the stock for $5. Even though the last trade is over 6, one might be happy to sell it for $5 after this news came out.
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Well OK, if you expect the UL to trade below $5 when it resumes trading then you have a point. But there's no guarantee that it will.
 
Quote from failed_trad3r:

Based on delisting of FNM FRE and ABK, they lost 66% 2 quarters of value approx. so RINO should open at $2/share or so which is 33% of $6. If not, then I'm screwed.:p
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You can't make the assumption that because 4 stocks lost 2/3 of their value after delisting that RINO will do the same. I've owned stocks that were delisted to the pink sheets because they didn't meet listing requirements and they didn't lose a penny (OK, didn't change much) . Ironically, the spreads widened and if you were clever enough to be the best bid or best asked by a penny, you got good fills from the fools who simply bot at the ask or sold at the bid.
 
Failed Trad3r,

What was the outcome here? I'm in the same boat now with ITM CCME March Puts. The stock has gone into a trading halt and management appears to have disappeared.

Did you get a short position in the underlying credited to your account or was there a cash settlement based on pre-halt closing price?
 
jindie, you can exercise the puts and get stock assigned short. Keep in mind you have to pay short interest and have the available margin on hand. interest adds up. Although Im pretty sure CCME will open down, they're not delisted as of yet.

Now what to do with the stock, you close your position when the stock trades again. Now, if that never happens youre money is gonna be stuck forever and you're going to have to pay the 90% interest a year forever on your short stock.
 
It looks like trading won't resume before March expo. Guess I have to exercise my long puts (2.5's), because I won't know for sure whether I've been assigned on the short 7.5's until it's too late. Right? Wonder what the chances of assignment are?
Thanks to anybody with thoughtful advice! Freaking POS ...
Karen
 
Looks like it depends on the broker. I've heard that E-trade won't allow exercise if it results in a naked short in the underlying.

Ameritrade seems to allow it.

I'm yet to hear from IB, but I suspect they'll take the same position as E-trade.

Failed Trad3r,
Who did you buy your RINO puts through?
 
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