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A $2 put for Jan 22 is currently trading with a 1.60-1.75 spread, meaning the break-even point is $0.25-0.40. Not much reward to have there. No shares available
by jaredtn 6y ago
A $2 put for Jan 22 is currently trading with a 1.60-1.75 spread, meaning the break-even point is $0.25-0.40. Not much reward to have there. No shares available to short either.
- mhb 6y agoYes, but you would also sell the call for 0.80.
- jaredtn 6y agoGood point. Are you making that trade?
- mhb 6y agoNo. I've considered it but it would not make for a fun time if the crazies bid Hertz up significantly.
- jaredtn 6y agoThat's the thing - tough to know how long a bubble lasts for. And choosing a time horizon based on the court system is difficult because bankruptcy proceedings can drag on for a long long long time.