jan 17, 2015 option about to expire

G

ggelitetrader000

I bought an option about an year ago for Jan 17, 2015 as expiration date at 10$ strike. However stock is almost worthless as of now costing only 0.05$ therefore it is most certainly be a completely loss of options by the expiration date. However I have tried to sell back at a market rate however several times order did not go through for the apparent reason no one is betting for this option. Therefore only option at this time seems to be wait for an expiration date just after new year. The reason I have tried to sell it before Jan was to include the loss in my 2014 tax return as loss. But it looks like it is not possible at this time? By definition at the end you can either exercise or not in latter case, you will just lose the money invested in the options entirely. I am assuming since the option is DOOM:) (deep out of money), it will just simply expire without exercising isn it? Thanks.,
 
That sounds good. I am sure market order did not work and order can be valid only for a day and expires after today's date.
I actually found that bid is 0.00 x0 and ask is 0.05 x32. That means no one is asking to buy at even 0.00$ :( isn it?
Anyways I tried to do a limit order at 0.01 but trading platform rejected until I raise the asking price to 0.05. Anything lower than 0.05 it reject and asked me to contact customer service. If i remember vaguely it might have to do with different level of trading privilege. Thanks.,
 
Last edited:
ggelitetrader000 said:
That sounds good. I am sure market order did not work and order can be valid only for a day and expires after today's date.
I actually found that bid is 0.00 x0 and ask is 0.05 x32. That means no one is asking to buy at even 0.00$ :( isn it?
Anyways I tried to do a limit order at 0.01 but trading platform rejected until I raise the asking price to 0.05. Anything lower than 0.05 it reject and asked me to contact customer service. If i remember vaguely it might have to do with different level of trading privilege. Thanks.,
More...
Call your broker.
 
Not all stock options trade in pennies, depending on the stock/index you are trying to sell, this may be why it was rejected. Even if it does not trade in pennies, ask your broker if you can sell the option at a cabinet. This is actually selling an option at a penny in order to accommodate a customer. Even if you are able to do this, there is no guarantee you will be filled.

If you are not filled, the only other thing you can do is to create a spread the will take off your position. This will be more costly. For example, say your stock is at 2. Both your Jan 10 calls and the Dec 10 calls are no bid at a .05. You would offer the time spread at a debit (you would be paying to sell the time spread). So you would offer to sell you Jan 10 calls and buy the Dec 10 calls as a spread. Normally you would receive money for selling this type of spread, buy first offer it at zero. If you are not filled, offer to pay .01 for it, then .02, etc. until you are filled (even though the individual options can't trade at .01 in some stocks, the spreads can). When you are filled you will then be left long the Dec 10 calls which will expire before the end of the year.

This solution is a bit more costly, extra commissions and the price you pay to do the spread.
 
FSU said:
Not all stock options trade in pennies, depending on the stock/index you are trying to sell, this may be why it was rejected. Even if it does not trade in pennies, ask your broker if you can sell the option at a cabinet. This is actually selling an option at a penny in order to accommodate a customer. Even if you are able to do this, there is no guarantee you will be filled.

If you are not filled, the only other thing you can do is to create a spread the will take off your position. This will be more costly. For example, say your stock is at 2. Both your Jan 10 calls and the Dec 10 calls are no bid at a .05. You would offer the time spread at a debit (you would be paying to sell the time spread). So you would offer to sell you Jan 10 calls and buy the Dec 10 calls as a spread. Normally you would receive money for selling this type of spread, buy first offer it at zero. If you are not filled, offer to pay .01 for it, then .02, etc. until you are filled (even though the individual options can't trade at .01 in some stocks, the spreads can). When you are filled you will then be left long the Dec 10 calls which will expire before the end of the year.

This solution is a bit more costly, extra commissions and the price you pay to do the spread.
More...
i am not familiar with this strategy but i am going to see if it works for me. looks like some learning curve needed. if all does not work, i just roll the loss to next year.
 
You must log in or register to reply here.
Back
Top