Experienced option traders, did you run into situation not being able to sell your options?

Discussion in 'Options' started by ggelitetrader000, Dec 19, 2016.

  1. Sig

    Sig

    Thank you for the obvious statement that there is a buyer for every seller, brilliant!
    If there is no bid it means no one has placed a bid. It does not mean no one is willing to buy, which you are saying. If I place an offer, then it's instantly visible to any and all potential buyers. It's very likely, almost certain in fact if you're offering to sell for less than intrinsic value, that a buyer will materialize and hit your offer.
    If you disagree then I offer you the following challenge: post an offer at less than intrinsic value by at least enough to cove commissions and post the option here. I will personally go hit your offer if no-one else has by the time I read it. And I'll do it every time no matter how many times you offer. Like I said, it's free money for me and anyone else who sees the opportunity.
     
    #31     Dec 21, 2016
  2. You don't need to do that, there are programs that do that automatically. But the bid and ask dictate fill price.
     
    #32     Dec 21, 2016
  3. Sig

    Sig

    You're either missing the point or being obtuse, either way there's no point in carrying on the conversation further.

    For the OP, just know that you'll always be able to sell any option that's ITM for a couple ticks off intrinsic if you post an offer, even if there is no bid posted.
     
    #33     Dec 21, 2016
  4. If you read my comment again, you will notice I am referring to OTM options. And mentioned ITM is another discussion ...
     
    #34     Dec 21, 2016
  5. show us itm option chain bid price is zero
     
    #35     Dec 22, 2016
  6. ironchef

    ironchef

    I think both of you are correct. If I post an ITM sell for less than intrinsic someone will pick it up? With OTM, I can sell less than intrinsic prices unless it is already almost worthless?
     
    #36     Dec 22, 2016
  7. Sig

    Sig

    This whole thread was about an ITM option. You will be able to sell an ITM option for slightly less than intrinsic, no matter what. OTM options have no intrinsic value by definition and a far OTM option may very well be worthless.
     
    #37     Dec 22, 2016
  8. ironchef

    ironchef

    My bad. If I try to sell below theoretical value or buy above, would that make any difference?
     
    #38     Dec 23, 2016
  9. Sig

    Sig

    I'm not sure I've seen a case of an OTM option with no bids that you could still sell if you put in an offer, so I'd have to defer to anyone else who might have seen that?
     
    #39     Dec 23, 2016