Zero account

Discussion in 'Options' started by The Rookie, Feb 26, 2020.

  1. What happens if account goes to zero BEFORE expiration? Do they close it automatically? I know accounts will close at expiration if no action is taken prior to expiration
     

    • Very poorly worded question.
    • Is "account" an option position?
     
  2. Yes
     


    • An option can go from $0.00 to $5.00
    • So the position will not be closed.
     
    Nobert and guru like this.
  3. ironchef

    ironchef

    I have lot of those zero value long calls, more after today. :banghead:

    They all stay open until expiry. Most, I couldn't even give away.
     
  4. If the options aren't expired they're not worth zero. I'm guessing you're talking about options that are zero bid at five cents. Although those are technically so far out of the money they will unlikely never be in the money, but it does happen, and the zero bids have a small chance to have value.

    I imagine last week there were plenty of puts that had zero bid that are now in the money. But to answer your question they won't disappear until they expire.
     
  5. ironchef

    ironchef

    zero bid at zero.
     
  6. There is no zero bid at zero, any market maker will be happy to sell you something that's worthless for nickel.
     
  7. TommyR

    TommyR

    i would buy those calls off you for 1000 basis points please
     
  8. Sold to the man in the front row.
     
    #10     Feb 28, 2020