Mtlqq is a worthless stock thats trading $.80. I am thinking about buying a long term/LEAP put on it. I don't have very much experience trading options though. Any thoughts/advice?
Unfortunately, you're not the only one who likes those puts apparently. The 2.50 put is offered at the insanely expensive price of 2.32. So if you buy it, you're risking 2.32 for the chance to make .18 maximum if the stock goes to zero. Not very good odds. So if you do it you'd better be VERY certain the company is doomed. Obviously a LOT of people ARE very certain it's doomed. I would say you're better off selling the stock short and buying the 2.50 call (offered at .04) as upside protection. But I see the stock is hard to borrow, so that may not be an option.
Unless I'm mistaken, and something changed then you'll just have to keep thinking about it. MTLQQ is on the pink sheets and the options are available for closing orders only.