If there was a company that was going bankrupt would it be smart to buy calls or puts, or just ignore them? There is a rumor that the trucking company Yellow is going out of business and their stocks are around a dollar. Not sure if I should practice doing calls or puts. I want to practice with a cheaper stock that is slightly predictable. Yellow stock is dropping and people that work there say it will go belly up in a week or so. Would it be advisable to gamble on their demise or just keep my money and watch the sinking ship?
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