Comment by kjksf
Per grok it's not true and per me it's not a problem in practice.
A put option is a contract between buyer (me) and a seller of the option. The contract guarantees me a right to sell stock at a strike price to the seller of the option.
If current stock price is lower than put contract strike price, I can exercise the contract and make money: I buy the stock from market at e.g. $78 (current price) and sell at e.g. $128 (strike price).
If stock is delisted the contract is still valid and enforced by the clearing house. They'll just assume that current price is $0 and force the option seller to just fork me cash without receiving the (unavailable) shares.
But it doesn't happen in practice because stocks are not just delisted without warning.
For example, Bed Bath & Beyond announced bankruptcy in April 23, Nasdaq announced delisting in April 25 and trading stopped in May 3.
So there was a week for option holders to settle their trades.
Grok is not a reliable source. What will happen is that if you are lucky, some institution with worthless shares will buy them from you at a very big discount OTC. If you are not lucky and your broker sleeps on you (since that deal comes from your broker calling someone on the phone, it's not automated), you will lose the options.