Exercise the put, that will make you short the stock, then buy to cover in the market. If the market stops trading on the exchange, buy on the pink sheets or in a private transaction.
When you are trading options, you are not really trading with anyone but the OCC. So assuming the OCC doesn't blow out, you will get your money. You have the right to exersice at the strike price, and the OCC guarantees that. Call them: http://www.optionsclearing.com/ nitro
As nitro said ... it does not matter who you sold them to, heck they might have covered them already. All that matters is the OCC will still guarantee them and they do, you're in the money gongratz
Newguy, if you had been long the stock, you could have exercised your long puts, thus closing out your stock position for the strike price. However, the problem is that the SEC won't allow you to exercise a put option which would create a short position in the stock of a company whith is on the emergency order list. I don't know if this would work, but speak with your broker and see if there is any way you can buy the stock. It seems that someone out there who has this worthless stock would be happy to take your money because it would be "found money" to them. 4Q
Has anyone managed to sell their PUTs in one of the recently bankrupt stocks? I have WB Oct 08 PUTs and no idea how to get rid of them. I use IB and I think I need to act quick before the PUTs expire. I called the OCC (1-888-OPTIONS) but they told me "Sir, I don't know if WB is going to trade again, I don't know what's going to happen, I don't have a crystal ball. But you can exercise the PUT and sell the stock."
You were obviously speaking to someone who fails to understand options. But, you may buy the stock - if it's trading anywhere - then exercise your puts to get rid of the stock (at the strike price). I don't think IB will let you exercise the puts before buying stock, but call to ask. If they will not do that, ask if they will buy he puts from you at a fair price. Mark
fyi, i put up a gtc order "buy to close" on my nov calls on wm for 0.05. and it got filled today when i got home. broker is optionsxpress