Market order for 0x0.05 bid/ask?

[a529612]

Will you get filled at 0 for a sell to open market order?

 

[Lucrum]

Being in this forum I'm assuming your looking at an option quote.

Normally a 0 bid would mean there is no bid/no buyer. Answer to your question would then be no. I'm not a big fan of "market" orders anyway but in this case I definitely would not use one.

 

[El OchoCinco]

I highly doubt it since why would you sell for nothing or why would someone buy (mainly the MM) for nothing.

The $0 bid means the market maker and no one else for that matters wants to buy that option but they are willing to sell it and thus an ask of nickle.

 

[opt789]

Quote from a529612:

Will you get filled at 0 for a sell to open market order?

Yes, you can just make it up with volume. I will buy them, how many do you want to sell?

 

[Maverick74]

No, you cannot open a trade at a zero bid. If you are selling to close, it's called a cabinet trade and you will get filled at a .01. MM's love cabinet trades. Better then playing the lotto.

 

[El OchoCinco]

Reminds me of the used car salesman who said he lost $400 on each car he sold but he made it up in volume...

Quote from opt789:

Yes, you can just make it up with volume. I will buy them, how many do you want to sell?

 

[anti ad hominem]

Quote from optioncoach:

Reminds me of the used car salesman who said he lost $400 on each car he sold but he made it up in volume...

Hehehe! That's really funny. Gonna giggle about that one all day.

 

[loufah]

I've gotten a fill of .02 on a sell to close market order.

 

[daddy'sboy]

This question may seem a little naive, but why would anyone want to close out a long option that is worth 0.02 or less? Pin risk is the only reason I can come up with.
db

 

[loufah]

Quote from daddy'sboy:

This question may seem a little naive, but why would anyone want to close out a long option that is worth 0.02 or less? Pin risk is the only reason I can come up with.
db

If the option is way underwater a day or two before expiration day and has a bid of .00, I close them out by selling at .05, and if that doesn't work I sell at market. Getting $50 for a 10 lot is better than getting $0. I actually got .05 for the DNDN May 7.50 calls on Thursday, which were OTM by 15%. But now that most brokers can trade on BOX, a market sell of an option that has a .00 bid can get you less than .05 per contract.