Is this IBM option active?

Discussion in 'Options' started by clarodina, May 1, 2009.

  1. This option info is taken from optionsexpress.

    However is this option active in the market? The bid is zero and the ask is 0.05. Open interest is at 660. Is possible to buy or sell this options? If buying this option at 0.05, how to sell (the bid is zero)? Does the option interest 660 says there are 660 contracts available selling in the market and there are no ppl buying the 660 contract?

    Strike Symbol Last Bid Ask Option Open Interest
    60.00 .IBMQL 0.05 0 0.05 660
  2. nitro


    It is really active. In fact, I am infinity bid zero. No matter how many you have to unload, I can accommodate you.

  3. The open interest represents the number of contracts still in existence. That means they were sold, but never repurchased.

    It has nothing to do with how many options are available. You can buy thousands of them @ 0.05.

    Yes, you can buy these options, and you can probably get them for less than 5 cents. But you will never be able to sell them for more than one penny.

    If you are merely asking, ok. No harm done.

    But, if you are considering trading these, forget it.

  4. You saying there are 660 contract currently being sold by options seller and they are traders buying 660 from them? Who would want to buy them and if they are brought how are they going to sell? The bid is zero so they are no value.
  5. Also for this IBM option symbol there is no volume when the chart is put up. But here is 660 open interests contract. Does zero volume implies no buyer but only just seller want to sell this options? Thats why the 660 contracts are all from seller butno buyer?
  6. cvds16


    you really need to read op on how markets and options work. Open interest means 660 options were sold once, the same number was bought of course. That number however has got nothing to do with the willingness of people wanting to buy or sell. Options can be created out of thin air, so it will be possible to buy thousands on the bid or ask. Problem in this case nobody seems to be willing to bid anything for it. There is certainly a good reason for that, but you can buy thousands at 0.05. The reason for that is they are most likely going to expire worthless. The fact that there is not volume in an option is a meaningless fact too, you have to look at the spread, bid or ask and look at the possible volumes there.
  7. cvds16


    Jesus, I just found out which option this is: it's the may 60 put. IBM is trading 104 USD ... it's time your brain started to wake up ...
  8. Zero volume simply means there was 0 volume on that option today. Some other day the volume could change. The 660 open simply means at one point some were traded and remain open. For example, when IBM was lower (say 90) someone might have bought 200 of them (for example) and the trade has gone bad on that buyer, but they have just held for now. So, the open interest is still there.

    The open interest of 660 has nothing to do with the amount available to buy or to sell.


  9. ZERO volume doesn't 'imply' anything.
    Forget the 660.

    it tells you that TODAY, no trades were made.

    That means buyers (if any) did not agree with a seller on price. No agreement, no trade.

  10. .IBMQL has a delta of ZERO and the first non-zero delta among IBM MAY PUTs is .002 for .IBMQP (strike $80).

    Delta also tells you the probability of expiring in-the-money so absolutely no point in buying them unless you have some insider news.

    Hope this helps.
    #10     May 1, 2009