I have discovered, by pure serendipity, a NASDAQ listed US Based company that has been failing slowly for 10 years. Last month they were trading at ~$2 and today at $0.8 and it's been failing like that, slowly for 10 years
I believe this is an opportunity to “short” the company but given that I've never done this before, I wanted to start with the basics:
- I buy put options using my Fidelity brokerage
a. as part of this purchase I need to pay a put option premium that depends on the option term?
b. or would that premium be already priced into the put option?
- If I wanted to try this for 2 weeks, (i.e, buy the puts on Monday and sell 1st May, or the week after), what should I be doing?
- What are some fixed fees involved?
Now when I follow this, it seems like a 2 week term is too short and it seems like at the minimum, it's a month with the expiration date as the third Friday of the month?
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