Bankruptcy

[Jelly]

I'm short Winnebago. Not wishing them any bad luck but if they go bankrupt, can I still cover? I also have puts. What about them?

This really is a generic question.

[aiki14]

I'm short Winnebago. Not wishing them any bad luck but if they go bankrupt, can I still cover? I also have puts. What about them?

This really is a generic question.

If you're short or own puts and the company goes out of business, you have maxed out. If you own xyz short at 20 and they close you get the whole 20, same with the puts. Not really common and they usually take a long time to go through the process so your likely to cover or exercise at .25 or something.

[Jelly]

If you're short or own puts and the company goes out of business, you have maxed out. If you own xyz short at 20 and they close you get the whole 20, same with the puts. Not really common and they usually take a long time to go through the process so your likely to cover or exercise at .25 or something.

Thanks aiki. I don't think I've ever come across that subject in my reading.