Can't sell my options

[prc117f]

Curious what options are you talking about?

 

[Deuteronomy_24_7]

Shhhh, that's his special sauce...

 

[CBC]

I might be making a mistake ere saying this, but if you were going to trade at intrinsic, then wouldn't you just trade the underlying against it? Isn't that a risk free trade? Because if the market moves against the option then you will make a profit from the move in the underlying, providing the market moves enough.

And if the market moves in favor of the option, then this will be perfectly offset by a loss in the underlying?

I haven't done this but I thought that is how it works.

 

[Sig]

I might be making a mistake ere saying this, but if you were going to trade at intrinsic, then wouldn't you just trade the underlying against it? Isn't that a risk free trade? Because if the market moves against the option then you will make a profit from the move in the underlying, providing the market moves enough.

And if the market moves in favor of the option, then this will be perfectly offset by a loss in the underlying?

I haven't done this but I thought that is how it works.

Completely correct, it just doesn't work if you don't have enough margin to buy the underlying.

 

[FSU]

I might be making a mistake ere saying this, but if you were going to trade at intrinsic, then wouldn't you just trade the underlying against it? Isn't that a risk free trade? Because if the market moves against the option then you will make a profit from the move in the underlying, providing the market moves enough.

And if the market moves in favor of the option, then this will be perfectly offset by a loss in the underlying?

I haven't done this but I thought that is how it works.

This is true, but there are reasons you may not be able to trade the underlying against the options. You may not have enough capital to put the stock position on, or if you need to short the stock, it may not be available to short.

Just because quotes are wide or there are no bids shown, it does not mean you can't sell the options for a reasonable price. The "real" market on the options could be quite tight, even though the quoted market is wide.

Also, I guess the OP isn't going to tell us the options he is holding and allow us to give him assistance.

 

[CBC]

Completely correct, it just doesn't work if you don't have enough margin to buy the underlying.

Yea I was thinking it might be more difficult with stock options because of the $$ required, however pretty easy to do with FOPs IMO.

 

[Sig]

Yea I was thinking it might be more difficult with stock options because of the $$ required, however pretty easy to do with FOPs IMO.

True, although you can trade calendar spreads for very little vis-à-vis the underlying on FOPs so even with FOPs it can bite you if you're not paying attention.

 

[JackRab]

@hurricane_sh which options are those then? I could give you a bid? You can PM me if you don't want the others to know

 

[ironchef]

I might be making a mistake ere saying this, but if you were going to trade at intrinsic, then wouldn't you just trade the underlying against it? Isn't that a risk free trade? Because if the market moves against the option then you will make a profit from the move in the underlying, providing the market moves enough.

And if the market moves in favor of the option, then this will be perfectly offset by a loss in the underlying?

I haven't done this but I thought that is how it works.

Thanks for your comments.

Give me another way to deal with my thinly traded options.

Question: Can you achieve that with another option that make things delta neutral?

Regards,

 

[CBC]

Hey Chef, I can't really help because I've never done a trade like that b4.

I don't trade thin options so I can't help. I've said on other threads, I just don't get myself into these kind of situations .

ES, ZN, CL, 6A/E/C/S/J, FESX, Bund.

Thats all I trade now. Otherwise I would try to help.