GREY:ROAOF - Post by User
Comment by
HopToadon Jan 01, 2009 2:07pm
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Post# 15676395
RE: Those PUT OPTION
RE: Those PUT OPTIONI am no expert on Puts, but it seems to me that puts should still good, even if the company goes bankrupt.
OIL is not a counter-party to your put transaction. The counter-party would be among those who "wrote" the puts(and took your money for them!)
If the put writers were bankrupt, you could presumably have difficulty collecting.
Also, I suspect that if a cease-trade order comes into effect, it could gum up the works, and at least slow things down.
And there may be complexities that I have no away of knowing about that might form part of the put contract?
The above is IMHO; anybody got additional perspectives that might help?