Adjusted Options (uncovered short puts) on Expiry

Question

I sold 35 short puts (adjusted options) each for $1.30 premium a month ago.
CHKA1 07/17/20 Put,
Strike price $1.50,
Underlying symbol: CHKAQ (formerly CHK)
After CHKAQ went bankrupt and currently listed on an OTC market, there is almost no trading in them. Therefore, it is unlikely I will be able to exit this position.
Questions:
If CHKAQ closes around $3 at expiration (mid-July):

Will my short puts be out of the money and expires worthless so I can collect the $1.30 premium at expiration?

Is there a chance of losing money? If so, by how much?

Will I get stock assigned to me?

Thanks

Bob Baerker · Answer

The amount of trading in your option is irrelevant.  What matters is if there is an ask quote other than zero for them.  If there is, you will be able to exit.  If not, offer to buy them for 5 cents.  Someone might bite.
If your options expire out-of-the-money then they will expire worthless.  If in-the-money then you will be assigned.
There's always a chance of losing money when you have an open position.  With traditional short puts, the most that you can lose is the strike price less the premium received.
However,  these are not traditional options and because of that, you need to find out what the terms are for the adjusted options.  I was about to suggest that you check the Option Clearing Corporation option adjustment bulletin but it just occurred to me that we discussed this last month. Read this.

Adjusted Options (uncovered short puts) on Expiry

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