GME was about to go bankrupt too with its stock trading as low as 90 cents at one point, look at it now and look how high it increased to at one point. Imagine you had ITM call options (which is what you have) when the price of GME was at $400+!! And your option is naked which means you have zero protection when a meteoric price rise happens. Oh well we will see what happens. This will be an interesting lesson for all of us.
I can just buy the calls back when calls goes to 0 when BBBY files for bankruptcy right, instead of waiting for 2 years?
I am going to hedge the calls by buying a Jan 2025 $15 call which is like $.29 since you guys are strongly suggesting against naked calls. So my loss is capped at $13k which l can live with. If I lose 13k so be it, I'll take my chances.
the thing is with this 2 year hedge you only take home small amount, risk reward ratio doesn’t make sense, return is not great. I closed all bbby and calls positions when the bad news broke early at a lost.
unlikely the stock be delisted anytime soon, hence the option chain will be listed still, even with no value.
You still didn't understand what everybody is telling you. The issue is not buying the calls back when they fall to 0. If the option's value is already at zero, there is no need anymore to buy it back anymore; you would've earned all of the premiums that you sold the calls for. LOL The issue is what happens when the calls' price goes up to $100+ or $77+ (the highest value that BBBY has ever reached) within this two-year period. Imagine that you would need to buy them back at $100 or at its former peak of $77 or hold them until their expiration risking them going even higher at expiration. You only assume that BBBY will bankrupt soon but what it if gets taken over and gets a second life?