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Just a word of caution to anyone with open August PUTS in
Irridium. The option exchanges are currently scheduled to
NOT reopen trading in the options(August)or otherwise unless
the stock reopens. There may be an attempt to relist the
stock as "billboard" issue so as to establish a possible
price ... but as of now there is no pricing information
available. As there is stock available the OCC will allow
the exercise of options and will automatically exercise the
ITM options at the COB tomorrow. As such if you are long
ITM puts you will end up shorting stock that you currently
cannot borrow so as to cover the trade. You will, in
effect, have to carry the short until such time as the stock
either trades or is "legally" delisted. If you hold the
option positions long in a cash account you need to contact
your broker so as to "work out" the terms for carrying the
short stock.
Just for future reference if the stock was halted due to an
"SEC" halt(information pending)then a closing rotation could
occur. This is not the case this time as the halt relates
to a non SEC issue ... the bankruptcy of the company. If
the stock doesn't reopen to establish a price this will
continue to be a challenge for holders of later expiration
options as well.
SO IN SHORT ... talk to your broker well before the COB
Friday.
You should really direct your questions to your broker ..
the exchange websites(currently)provide no additional info.
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