in case the firm goes bankrupt/is delisted and stops being traded on the Exchanges?
If a stock stops trading then you can’t exercise or trade your puts anymore. All options would be worthless.
Does that seem reasonable to you? Of course that’s not the case. First, if the company goes bankrupt that does not mean that the stock goes to 0 or gets delisted anytime soon. It may well be advantageous for you to exercise the option in the usual sorta way. If the stock stops trading, the exchange will issue a bulletin about how the options are to be exercised so nobody gets screwed. If you have a put option and the company goes under, all good things are happening to you. You vulture pig-scum negative delta American life blood sucking buzzard.
Out of interest Joey, do you think you should be able to short bad companies?
I think you should only be allowed to short good companies.
I think you should be able to short anything you can get your hands on. I think you should be able to short on down ticks. I think that you should be able to short MSFT into the ground if you have the capital to do it.
Muddahudda Wrote: ------------------------------------------------------- > Out of interest Joey, do you think you should be > able to short bad companies? can you explain this? are you referencing the current short ban ?
Maybe it’s because it’s nearly 7pm here, but I dont get what I need to explain. It is a relatively straightforward question. More general, not related to current rules, but I suppose that is what brought up the topic in the first place.
Muddahudda Wrote: ------------------------------------------------------- > Maybe it’s because it’s nearly 7pm here, but I > dont get what I need to explain. It is a > relatively straightforward question. > > More general, not related to current rules, but I > suppose that is what brought up the topic in the > first place. well then its a relatively straightforward moronic question of course you should be able to short “bad” companies, if by “bad” you mean stocks you think will lose value wtf do you think is shorting is for? now if you mean “bad” = tobacco or some other nonsense, then i’d just say of course again
Lol. I just wanted to know if Joey was philosophically against shorting or merely being tongue in cheek with ‘If you have a put option and the company goes under, all good things are happening to you. You vulture pig-scum negative delta American life blood sucking buzzard.’ Some people seem to think it is unpatriotic to short, especially at the moment. You & I concur. BTW, There are no stupid questions, just stupid people that ask questions
good to hear its unpatriotic to try and NOT make money in my opinion