so why not just suggest to buy OTM calls on the chance that STO...

so why not just suggest to buy OTM calls on the chance that STO hits a bottom somewher above 3.80 and then takes off north quickly - which may happen if your theory above pans out. Priving given the vol may make to expensive for any options but OTM should be relatively cheap

The issue with naked puts is that if it goes to 2.50 you are stuffed and there is track record of that price. If you buy calls then only lost premium but if long term holder and you are a believer in the $6+ price then not such a big deal if you then go in and buy much lower.

Of course what happens to SP if they do have another credit raising and they use the money just to keep cashflow positivr due to the cash burn. Therfore IMO what i would do is a spread so if you are outside the 3.80 to 4.20 range you should be a winner because this stock will either tank or recover quickly. but right now its hard to know which way .

But my question on this stock is that its just a gamble at moment and if objective is to make money then there are so many other stocks which have a higher probability of going one way or another.