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REDDIT

GME Put Options Hypothetical

H
Feb 24, 2025 · 20:55

What is the worst thing that could happen if I buy 50 PUT Options with Strike price of $5 for expiry in year 2027 without owning the underlying stock?

I understand I have the OPTION (not the obligation) to sell the stock at $5 per share if I were to exercise the contract or in the case the stick price goes to zero.

What are other worst case scenarios for me that I as an average retail investor may not be thinking about (Assuming stock goes to zero and trading is halted, another short squeeze, etc)?