Hello, I brought the May 13, 2016 BAC PUTS 13.5 at 0.05 cents. Right now the Bid is 0 and Ask is 0.01. The market value on this options right now $45. How can I atleast get $45 or will I lose the whole cost value. If it's about to expire I would atleast take the $45 but nobody is bidding 1 cent. Let me know if there is a way that I can atleast have the market value.
Honestly, you should not be trading options if you are asking this question. You are just not ready yet.
Ask yourself why would anyone want to pay $0.01 for those crappy puts....then you realize why you cannot unload them. Buying puts for a nickle is basically an all or nothing proposition so be prepared to lose the full value of the strike is OTM..
The market value could be: The mid between the bid/ask The ask Or last sale The broker uses it to show you the unrealized gain or loss. When it comes to selling-to-close you are most likely stuck with the bid, which could be NA.
I'm sorry, it's late, I'm dense. What do you mean when you say "market value" is $45? You have a week to go, right? You need BAC to close below $13.45 at expiry to be profitable? BAC is currently $13.88, and I think you'll run into some headwinds at $13.55 or so, but it's certainly possible these puts will regain some value. The question is when do you bail. You certainly can't lose any more than you have.
Consider urlself lucky for losing just $45. I lost 10K on some BAC puts / calls one trade. :/ The very first lesson I ever learnt was to trade directly at the money. I strangle traded some options that were way... way... WAY out of the money. Lost 5K in the process. I saved for like 5 months for that money and BANG! lost it all on my second trade. Who's counting? Mbey you are learning this lesson now. I recommand NOOB people start at the money and then decide what they want to do from there.
"or will I lose the whole cost value." Yes, you lost the value. You bought the weekly options that expired worthless as the stock didn't close below the strike price of $13.50 (it closed at $13.88). So nobody was going to buy them, not even for a penny, since the chances of the options going "in the money" was slim to none, hence the bid was at zero. The weekly options can provide lofty percentage gains or huge percentage losses rather quickly. These are basically random shots that may provide some euphoria when you're right, but they can also become huge letdowns when you're wrong.
Market Value is the total value (unrealized) of the holdings based on the Current Price. Current Price could be the bid, ask, last sale, mid point - depends on the broker. My broker uses the ask on long option positions for the Current Price. Different brokers also might use different terms instead of Market Value, Current Price The options expired last Friday, May 13, 2016