When you hold put options on a convertible bond, it is considered to be a wonderful opportunity to profit from the upside potential of the underlying security while enjoying downside protection. A Singapore-based portfolio manager of a London-based fund has investments in Euro convertibles with put options of a large Malaysian timber company. However, he is jolted out of his sense of complacency when he learns that the put option may spell bankruptcy for financially weak companies like Aokam Perdana Berhad. So, are put options safe after all?