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

MAY 13, 2019 - 01:51 PM EDT
MIAX Options, MIAX PEARL and MIAX Emerald Delistings Effective for May 14, 2019


The following option classes will be delisted from the MIAX Exchanges effective on Tuesday, May 14, 2019:

• Braskem S.A. (BAK)
• Bristow Group Inc. (BRS)
• Weatherford International plc (WFT)

All GTC orders resting on the MIAX order books in BAK, BRS, and WFT will be canceled at the close of business on Monday, May 13, 2019.

Please contact MIAX Listings with any questions at Listings@MIAXOptions.com or (609) 897-7308.

They have not posted a listing bulleting for the new symbol as of yet.

 

Thanks for your input. Is there another platform I need to watch OTC market? Or a good website to watch the OTC charts on? Also, does robbinhood do OTC trading?

Thanks again you guys have been awesome helping me understand everything

 

Robinhood has a limited selection of otc listings. I would recommend getting with a better broker if you're trading options.

 

Well, your options are trading. Stock is at .07 and the May 50's are very wide. You can try and sell your options out, or you can buy the stock and exercise your puts.

 

What should I close the $1 put at?

 

I would offer it at parity, so .93 and walk it down to .91 (so .02 under parity) if not filled, I would buy the stock and exercise my put (if you buy the stock at .07, and exercising your put, you are essentially selling your put at .93)

 

It just spiked to being worth $2.46 . Could I close it at that price?

 

No, you can't. It is worth about what the intrinsic value is. It didn't spike to 2.46 (the May 1 puts). The intrinsic value is currently .95 (With the stock at .05). You will need to sell it below this price for a MM to be interested in buying it. Or you can buy the stock at .05 and exercise your put to exit your position at synthetically .95.

 

The Spike was temporary it was at 2.46 and then it went away. I'm still learning how everything works but thanks for all your help. Chart shot straight up for a second or two.. Then right back to .96

 

You need to understand that they didn't spike to this price. They market may have briefly gone 5 dollars wide on these options and Robinhood took the mid price, but this is not an indication of the value or where it is trading.