Quote from 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.
Quote from yip1997:
Mav,
I love to sell to close my rut 690 May put option at 0.01. How can I do that? What type of order do I use? Should I use market order? It is better to get 0.01 than nothing.
Quote from Maverick74:
You use market order but why would you do that? Your commission will almost make it a breakeven transaction. You never sell nickel puts. You certainly never should sell penny puts.
Quote from yip1997:
I believe TOS offers free commission for closing a position with price <= 0.05. I longed this put for some special reason some time ago. I wanted to sell it one day before expiration when it was almost 100 points away from the spot.