US exchanges require MMs to post a two sided market. You can't be a MM and simply not quote. There are also maximum b/a spread rules and allowances for thinly traded issues. Ask you broker's help desk to have their consolidator ask the exchange to post a market. Is this a US exchange and is the option multiply traded or single list ?
Can't sell my options
- Thread starter hurricane_sh
- Start date
I think you are right. Last time I read the rules when I started trading options in 2013, I think that was what they said but I don't know if all US exchanges follow those rules?
Yes.
Since I can do partial exercise, the problem has been solved. I find it strange that no one knows about it, or no one cared to point it out.
Of course I have no problem revealing the option, I believe this is a common scenario, nothing special about it. This option is SFUN 3 Jan20'17, I bought many contracts at $0.2, unfortunately I missed the best chance closing my long call position when the underlying was at $3.2x, I should have made 100% profit if the option was traded like before, no bids when I want to close.
Of course I have no problem revealing the option, I believe this is a common scenario, nothing special about it. This option is SFUN 3 Jan20'17, I bought many contracts at $0.2, unfortunately I missed the best chance closing my long call position when the underlying was at $3.2x, I should have made 100% profit if the option was traded like before, no bids when I want to close.
Thanks.
I have a general question kinda related to not having a quoted market for an option and it's a put.
1. Buy an ATM put on a company when it's price is $100.
2. Something catastrophic happens to the company, shares fall to $1, bankruptcy imminent.
3. You're not getting quotes for your super deep ITM put.
4. You exercise the put.
5. There's no shares in your account to "put" the stock to someone else so 100 shares are borrowed for you and you're now short the stock with a $99 profit if you buy back the shares after the assignment of the short sale (minus trans fees).
This works, right? I haven't ever heard of anyone exercising a put when they don't own the stock and it's something I haven't come across in the options literature so that's why I ask. Thanks.
1. Buy an ATM put on a company when it's price is $100.
2. Something catastrophic happens to the company, shares fall to $1, bankruptcy imminent.
3. You're not getting quotes for your super deep ITM put.
4. You exercise the put.
5. There's no shares in your account to "put" the stock to someone else so 100 shares are borrowed for you and you're now short the stock with a $99 profit if you buy back the shares after the assignment of the short sale (minus trans fees).
This works, right? I haven't ever heard of anyone exercising a put when they don't own the stock and it's something I haven't come across in the options literature so that's why I ask. Thanks.
I believe that rule applies to stocks, not options.
Robert Morse
Sponsor
You are giving up a lot of money by exercising the options here. When you exercise the call you are essentially assigning a zero value to the corresponding put. Looking at your options now, I see a market of .15-.25, with the stock at 3.05. I would suggest in the future that you do not exercise your calls, but put an offer in on the calls and see if it is taken. You can walk the offer down slowly until you are filled. Here if you exercise the call you are essentially selling the call for .05.