Closing a position with terrible spreads

A

alphadistribution

Hi all,

I have put debit spreads on TGE for April 17 $19/17 and $18/17. The $19 are now ITM ($18 were until last week). I paid something like $0.01 for them but would love to get something back. Trouble is: the spreads are $4 wide on these contracts, and putting in a close order on the combined spread even for a $0.05 credit I'm not getting any fills.

Is there anything I can do to get out of this position without just praying for a fill? I.e. buying shares to delta hedge? Any better ideas?

To complicate things... these are held in Robinhood, so just waiting for exercise is not an option. I am open to ACATSing them to a real brokerage, though.

Thanks!
 
What is the NBBO? You're protected by NBBO no matter who your broker is - unless you request some specific routing.
 
You are long the 19/18 put vertical? Yes this definitely has some value. Just because there are wide quotes on the individual options, it doesn't mean the "real" market on your spread is not much tighter.

If I were you, to get out of the position, I would sell it as a spread. Start at .70 for a 1 lot spread and if you are not filled, cancel the order and enter it again lower, continue until you are filled.
 
FSU said:
Start at .70 for a 1 lot spread and if you are not filled, cancel the order and enter it again lower, continue until you are filled.
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I tried this, down to $0.05 and still wasn't filled. At that point, I figured there's got to be some way to get more value out of it.
 
alphadistribution said:
I tried this, down to $0.05 and still wasn't filled. At that point, I figured there's got to be some way to get more value out of it.
More...
Could be a Robinhood issue. I would say the spread is worth at least .50 Not sure how they route their orders. I will look at it again when the market is open tomorrow.
I would strongly suggest you move away from RH. With a broker such as TD, you can route a spread to a specific exchange.
 
alphadistribution said:
Hi all,

I have put debit spreads on TGE for April 17 $19/17 and $18/17. The $19 are now ITM ($18 were until last week). I paid something like $0.01 for them but would love to get something back. Trouble is: the spreads are $4 wide on these contracts, and putting in a close order on the combined spread even for a $0.05 credit I'm not getting any fills.

Is there anything I can do to get out of this position without just praying for a fill? I.e. buying shares to delta hedge? Any better ideas?

To complicate things... these are held in Robinhood, so just waiting for exercise is not an option. I am open to ACATSing them to a real brokerage, though.

Thanks!
More...

Cant ride it till expiration and let it exercise and offset it by the buying or selling which ever leg your short???,, i ran into this the other day with X, i was long the calls though and i just excrsied them and sold the share, doesn't happen often though
 
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