what happens if you're long puts when a stock goes to zero?
- Thread starter IronFist
- Start date
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Depends a lot on how fast it happens;easy to lose money on that trade/not a prediction
Depends on specifically. If the stock has completely stopped trading like Enron, the OCC will step in and create some kind of settlement procedure.
if the stock still exists, the settlement is still the stock regardless of its value.
if the stock still exists, the settlement is still the stock regardless of its value.
I generally avoid options when naked.
IF you exercise or sell the option, yes. If your broker charges you a commission to sell the option, I would just let it get exercised.
You are now short the stock. Then what?
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No reply since your initial clueless reply.
How does that work?
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Exactly the same way frost melts on my frozen watermelon slice quick\in 95 degrees in summertime
As far as 3 weeks 'till 3rd friday\that's a long time in that market...................................