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

Discussion in 'Options' started by roeco89, May 10, 2019.

  1. FSU

    FSU

    It appears the stock and options are halted.
     
    #31     May 13, 2019
  2. roeco89

    roeco89

    So what exactly does that mean for me. What should I do in this position? I thought this put was going to be very profitable..
     
    #32     May 13, 2019
  3. roeco89

    roeco89


    I contacted Robinhood and they're telling me that I cannot exercise my option early because trading is halted? I need to get my profits off this option.. Any ideas on what to do?
     
    #33     May 13, 2019
  4. FSU

    FSU

    You would not want to exercise your option in this case as you will then be short stock, not out of your position. This could create other problems.
    As mentioned by others, the OCC will generally post a memo on how they will be handling the situation if the stock does not reopen for trading. You can also contact them directly.
    https://www.theocc.com/
     
    #34     May 13, 2019
  5. roeco89

    roeco89


    Thank you for your advice.
     
    #35     May 13, 2019
  6. Trading on WFT was suspended, huh? Well, you're obligated to get something out of your put sooner or later. Just a penny stock anyway.
     
    #36     May 13, 2019
  7. roeco89

    roeco89

    I'm starting to worry a little, I'm still confused lol. I contacted Robinhood and they told me there's nothing I can do to exercise or sell my option. They also said that they don't believe WFT will be traded anymore.
    I feel as though I'm owed something here, just don't know how to collect it. Definitely doesnt feel like its worthless .. Can you explain a bit more on what I should do now. Feel like Robinhood should let me exercise early... I could be wrong but that's why I'm asking for help.

    Thanks again for everything
    Craig
     
    #37     May 13, 2019
  8. ETJ

    ETJ

    From OCC
     
    #38     May 13, 2019
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  9. roeco89

    roeco89


    Thanks for the link! Does this mean that I will be able to sell my option for profit tomorrow? Just under a different symbol? Says it's on OTC, will Robinhood allow me to still close my option?
     
    #39     May 13, 2019
  10. ETJ

    ETJ

    Simply not certain yet who will relist the option. Many exchanges won't bother with a OTC billboard name during expiration week unless they had open interest and the lead MM requests it, but I suspect it will list somewhere
    Buy the new stock OTC and exercise? Sure
    Will it be profitable? Depends on billboard spreads and again - total speculation on my part - but I wouldn't be shocked to see huge spreads in the billboard issue.
    Simply have to watch tomorrow's pricing and communicate with your broker.
     
    #40     May 13, 2019
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