Forums - Scalping OTM time premium near close on expiration Friday

HOME FORUMS BROKERS SOFTWARE BOOKS CONTACT US

Your Account • Become a Member • Help • Search

	Forums ›› Main ›› Options ›› Scalping OTM time premium near close on expiration Friday

Page 1 of 3: 1 2 3

turkeyneck

Registered: Dec 2007
Posts: 1869

10-12-12 09:54 PM

Why OTM call won't go worthless on expiration Friday near close? I tried to scalp time premium on AAPL Oct 12 630 Call (sell to open for $0.35 at 15:33 ET) and expected it to go near worthless at close. The stock traded under 630 but the option was still trading near my entry point at close. So I lost money on the trade after factoring in commission when I closed it out at market at 15:59:XX ET. I expected it to trade at $0.05 or $0.1 at most at close but the bid/ask just won't go my way.

Edit/Delete • Quote • Complain

Took2Summit

Registered: Jul 2011
Posts: 401

10-12-12 10:17 PM

why didnt you just let it expire worthless? options expire on saturday so on friday close there is still value, stock can have an after market news that makes share price go up before saturday etc..

Did you even read your options disclosure agreement???

Edit/Delete • Quote • Complain

optionbull

Registered: Apr 2012
Posts: 240

10-12-12 10:21 PM

Quote from Took2Summit:

why didnt you just let it expire worthless? options expire on saturday so on friday close there is still value, stock can have an after market news that makes share price go up before saturday etc..

Did you even read your options disclosure agreement???

excellent!

Edit/Delete • Quote • Complain

Took2Summit

Registered: Jul 2011
Posts: 401

10-12-12 10:23 PM

oh and i just read this a little more clear, even on weeklies you can't buy it back there will always be a spread, need to let it expire worthless.

Edit/Delete • Quote • Complain

cdcaveman

Registered: Aug 2011
Posts: 3513

10-12-12 10:32 PM

I have sold weekly options at OPEx
.no mm is gonna post an offer for a close to the money for .05 cents or anywhere near their on high dollar stocks... if the UL is anywhere near the strike your selling... still time & risk left

Edit/Delete • Quote • Complain

turkeyneck

Registered: Dec 2007
Posts: 1869

10-12-12 10:45 PM

Quote from Took2Summit:

why didnt you just let it expire worthless?

Don't want to risk assignment. It's only marginally OTM and can go slight ITM with big boys doing the tape painting at the last second before close.

Edit/Delete • Quote • Complain

Page 1 of 3: 1 2 3

Receive an email whenever a new post is added to this thread by subscribing to it.

Rate This Thread:

Forum Jump:

Conduct Rules - Privacy Policy - Day Trader - Day Trader Forum - Best Trading Software - Sitemap

WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures Futures Brokerage & Clearing AMP Global Clearing Futures and FX Trading Bright Trading Professional Equities Trading CTS Futures Trading Software DaytradingBias.com Professional Trading Analytics ECHOtrade Professional Trading Firm	eSignal Trading Software Provider FXCM Forex Trading Services Global Futures Futures, Options & FX Trading Interactive Brokers Pro Gateway to World Markets JC Trading Group Direct Access Trading MB Trading Direct Access Trading	MultiCharts Trading Software Provider NinjaTrader Trading Software Provider OANDA Currency Trading optionshouse Option Trading & Education Rithmic Futures Trade Execution Platform SpeedTrader Direct Access Trading	SpreadProfessor Spread Trading Instruction thinkorswim by TD Ameritrade Direct Access Trading TradersStudio System Building & Backtesting Trading Technologies Trading Software Provider Trend Following Trading Systems Provider