http://ask.metafilter.com/tags/halt Questions tagged with 'halt' at Ask MetaFilter. Thu, 27 Apr 2006 07:52:22 -0800 Thu, 27 Apr 2006 07:52:22 -0800 en-us http://blogs.law.harvard.edu/tech/rss 60 http://ask.metafilter.com/37125/What%2Dhappens%2Dto%2Dthe%2Dvalue%2Dof%2DPut%2DOptions%2Dif%2Dthe%2Dunderlying%2Dstock%2Dgoes%2Dbankrupt Speculating Filter: What happens to the value of a Put Option if the underlying stock halts trading and/or goes bankrupt? I'm a believer in a housing bubble and a bear on the residential real estate market. <br> <br> I recently made my first foray into speculating by going long LEAP Puts <a href="http://www.cboe.com/LEAPS">(Long Term Equity AnticiPation Securities)</a> on several homebuilders.<br> <br> Doing some quick calcs on one of them (homes started, homes in inventory, rate of sale, % decline in median price, holding costs, cash on hand) I think there is a chance one of them might go bankrupt before the LEAPS expire if the housing market continues to decline.<br> <br> What happens to the value of a Put Option if the underlying stock goes bankrupt and/or halts trading? Does the option become worthless because it can't actually be exercised? tag:ask.metafilter.com,2006:site.37125 Thu, 27 Apr 2006 07:52:22 -0800 bankruptcy halt leaps options puts stocks trading de void