LABD Option Question

T

trader99

So, I bought some LABD call options with strike of 5.5 and expiration of Nov 17(this friday) a while back.

Underlying LABD stock is now around 5.40 and I think it will hit 5.50 if not more by today and the rest of the week.

Yet, the call is quoted as $.10 in my IB account. I know time to expiration is not much but I would figure it would be worth a lot more. Maybe I'll wait and see...

Anyone wants to chime in?
 
Same here:
upload_2017-11-13_11-2-18.png
 
Your screen shot shows an IV of .54 for your call

If you plug that into a pricing model with the other expiration info, it suggests a price of 8 cts. With LABD at $5.37, your call now is $0.00 x $0.15 with a mid point of $0.075

My chime is that based on that, I don't think that it should be worth a lot more.
 
spindr0 said:
Your screen shot shows an IV of .54 for your call

If you plug that into a pricing model with the other expiration info, it suggests a price of 8 cts. With LABD at $5.37, your call now is $0.00 x $0.15 with a mid point of $0.075

My chime is that based on that, I don't think that it should be worth a lot more.
More...

That makes sense. It closes at $5.40. Maybe I should have bought a longer dated option to express my view. hehe. If it goes to $6 by Friday then my LABD call options will be worth more than a dime each... :)
 
spindr0 said:
Hope springs eternal :->)
More...

Just as predicted. LABD is now 5.50x5.51 and the IB is showing the ask of 0.30. But no bid.. LOL. :( I want to get out.

Suppose by Friday it's in the money, but there's no bid?? Then it will just expired worthless? WTF?

P.S. Now that it's 5.55 there's a bid at 0.05.. That bid needs to go up..

P.S.S. Now the bid is 0.10. Stock is at $5.60 now. You guys better jump in and ride this! :)
 
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Strangest thing! The bid is 0.10 and the ask is 0.20. Yet I was able to sell two times in batches of 5 lots at 0.25. How is that possible? Some hidden exchange I'm not away of?

Should have sold more... Let's see how it goes
 
1) you are trading an ill-liquid product
2) The BID/ASK values are dynamic
3) The BID/ASK do no reflect a market order.

For other ill-liquid products, I have been amazed at how my small QTY Limit order, was able to significantly alter the BID/ASK value and sizes. -- It seemed algorithmic responses to my orders modifying the BID or ASK!
 
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