The price of put options on VRX is extremely high.
For example, VRX closed on Friday at $93.77. The cost of a 1 week put at 90 strike was about $5.70. The cost of a 2.5 month put at 90 strike was about $15.00. The cost of a 15 month put at 50 strike was about $10.00.
I doubt that VRX will collapse immediately. These things always take a while to play out. With that in mind, look at that last data point. You would have to pay $10 for an option that won't have any value at all unless VRX goes from $94 to under $50 in the next 15 months.
It might make more sense to sell a call spread instead of purchasing puts, but the option prices are very high and this stock swings wildly. This is definitely adult swim, the very deep end of the pool.
I'm not brave enough to play this stock. It's much like playing Herbalife, where you've got billionaires like Ackman on one side, billionaires like Icahn on the other side. Often the best move for a small investor is to not play at all.
