So, I bought some LABD call options with strike of 5.5 and expiration of Nov 17(this friday) a while back. Underlying LABD stock is now around 5.40 and I think it will hit 5.50 if not more by today and the rest of the week. Yet, the call is quoted as $.10 in my IB account. I know time to expiration is not much but I would figure it would be worth a lot more. Maybe I'll wait and see... Anyone wants to chime in?
Your screen shot shows an IV of .54 for your call If you plug that into a pricing model with the other expiration info, it suggests a price of 8 cts. With LABD at $5.37, your call now is $0.00 x $0.15 with a mid point of $0.075 My chime is that based on that, I don't think that it should be worth a lot more.
That makes sense. It closes at $5.40. Maybe I should have bought a longer dated option to express my view. hehe. If it goes to $6 by Friday then my LABD call options will be worth more than a dime each...
Just as predicted. LABD is now 5.50x5.51 and the IB is showing the ask of 0.30. But no bid.. LOL. I want to get out. Suppose by Friday it's in the money, but there's no bid?? Then it will just expired worthless? WTF? P.S. Now that it's 5.55 there's a bid at 0.05.. That bid needs to go up.. P.S.S. Now the bid is 0.10. Stock is at $5.60 now. You guys better jump in and ride this!
Strangest thing! The bid is 0.10 and the ask is 0.20. Yet I was able to sell two times in batches of 5 lots at 0.25. How is that possible? Some hidden exchange I'm not away of? Should have sold more... Let's see how it goes
1) you are trading an ill-liquid product 2) The BID/ASK values are dynamic 3) The BID/ASK do no reflect a market order. For other ill-liquid products, I have been amazed at how my small QTY Limit order, was able to significantly alter the BID/ASK value and sizes. -- It seemed algorithmic responses to my orders modifying the BID or ASK!