I'm unable to close an option position on a stock that moved to OTC. I am meeting the bid. Any sell orders I submit do not change the ask. Is this normal?
Cannot close otc options position on Robinhood
byu/SouthpawGT inoptions
Posted by SouthpawGT
3 Comments
Please be specific. What is the stock and the option? Are you using a new adjusted symbol?
if you “Buy to close” you need to meet the Ask price.
It looks like these options are only being quoted on 1 exchange (EDGX) and yours (along with a few other strikes) are not being quoted at all, for whatever reason. Quotes may appear later.
This is such as cheap stock (trading at .08) If you want to close your position, your best bet would be just to buy the stock at .08 and exercise your puts. There most likely wont be any extrinsic value here, even though they expire a while from now. If you didn’t want to completely close your position, you could buy the stock and not exercise your puts. This would make you synthetically long the Jan 26 1 call.
There may be restriction in trading this OTC stock with your broker. So, before you buy the stock, call them to see if there is any restriction. Mention your plans to exercise your put as well to close your position.
If they don’t allow you to trade the stock, ask them to contact the EDGX exchange and ask them to quote this strike.