Replies to post #26224 on Options Wonderland

[sliverbullet]

What I meant by that is if 2 months was enough time for things to deveolop, for people or events to take place that will drive the stock down to that level in 2 months. Or will it take more months i.e. November, January.

[Tommy86]

i think buying these puts is nothing more than a lotto. you expect to win very big or lose it all. if you buy the aug puts you are giving it 2 months to tank big (bankruptcy or similar).

if that doesnt happen your contracts will expire worthless or you could sell them with enough time before expiration for a big loss.

BUT:

#1 why would you sell them for a loss, you are playing a lotto here, you want it to tank completely, so no sense in selling before and if you have bad luck it tanks after you sold.

#2 i say you´ll lose it all if expiration is near and it didnt tank cause your puts will be far OTM (no intrinsic value) and no timevalue as well.

i hope i could help, but im a newbie myself ;-)