Comment by URSpider94

This is not even that. The parent is talking about the case where the stock does indeed go to zero and get de-listed from the exchange, in other words the market becomes rational. At that point, you're holding put options that are ridiculously in-the-money, but you can't execute or sell them to take your profit because the underlying stock is gone. So, your highly valuable stash of Nikola puts becomes worthless ...