put - no volume
- Thread starter Tal priel
- Start date
Buying an option where there is no/thin volume is sort of like the Hotel California... "you can check in, but you can never leave".
Start trying to sell it at a little under intrinsic. Usually someone will step up and buy it when it is profitable for them.
Tell everyone here the ticker and put your order in under intrinsic and there will be plenty of folks here willing to go lift that if no-one else in the market does first.
You may place limit order for just under the current ask, wait a couple minutes, then reduce by a small increment until you are near/at intrinsic value. If no fills, then you can re-evaluate reducing your price VS your desire not to exercise again. May be enlightening to check the open interest to insure you are not the sole holder of that PUT.
Just because the quote market is wide, it doesn't mean the "real" market is wide too. Look at the corresponding calls. If they have no value, your put is worth parity. To sell, offer a 1 lot a few cents above parity and if not filled lower it. You can lower the price every few seconds, no need to wait. Lower the price until filled. You should be filled within a few cents below parity (looking at the offer price of the stock) at the worst case. If not you can consider buying the stock and then exercising your put to get out of the position.
What is the extrinsic value? Just because the ask is 5.4 and bid 0.4 does not rule out you selling to close. Put in ask of 2.82 and you will be at the top of the book. What is the open interest.