New to trading options. Need advice on Put option now in bankruptcy

Hi, I hope I'm posting this in the right section. I have recently dove into options trading and have had decent luck so far just placing small trades trying to learn how everything works. So today, I bought a Put Option on WFT and now after-hours they have filed for bankruptcy. I have done some research and found a few discussions on the topic but I'm looking for advice on how exactly I should play this for the most potential profit.

Thank you for any advice
Craig

 

You probably don't have anything to worry about, but you probably won't get rich from it, just thinking.

 

Thanks for your response. What are things I need to look for during the next few market days with this stock? Since it has plunged downward after-hours, would it be better for me to sell it Monday or let it run its course through expiration? As I said earlier I'm still learning so I apologize for asking these questions I just feel like I can make a few bucks off this one so I want to make sure I do it correctly.

Thanks again for any advice!
Craig

 

It pretty much was trading as dead. OCC will issue a bulletin, but it may not change in price much.

 

Sorry for my lack of knowledge here but what do you mean by OCC will issue a bulletin? Do I need to sell my Put or just let it expire? The stock has dropped 79% after-hours.

Thanks again

 

meaning likely the put you bought was priced as if there was a strong chance of them going bk. i wouldn't let it expire but that's just me. posting the strike, series, and price you paid would help

 

I see that after hours it is way down, trading 0.10 down 72%, nice put buy. You don't say which put you bought but it doesn't matter that much because the lowest strike I see is the .5 so any put will be way in the money. The most you can make is only .10 more. You have to weigh the possible outcomes. However, a connected singer once sang "take the money and run".

 

Would need to know the strike price and expiration date to make a plan.

 

The May .50 put was trading about 20 cents all day. So what will happen between Monday open and Friday. If you exercise you need to find the stock to deliver and it's unclear what will be available this week(assuming they are May options). How about selling them - if they open for trading then you'll have price discovery and you can decide. What if the stock doesn't open - then OCC will issue a bulletin and "probably" do some sort of closing rotation on Friday and it's fairly likely the price discovery will come from the closing rotation. So if there is nothing trading on Monday visit the OCC site and hopefully they have a sense of how they'll settle. The May expiration won't occur without OCC making a settlement determination. Hopefully, your broker will keep you informed, but I'd visit OCC's site on Monday if trading is halted.

 

Thanks for all the responses! I purchased the $1 put buy for .62 expiring 5/17.

Thanks for the help guys