I have a quick question…
let’s say I have options to buy 1,000 shares @$30/sh.
option expires on, let’s say, May 17th.
it is 3:30PM EST on May 17th, market closes in 30 minutes, and stock is trading at $34.
so, in 30 minutes, my options are worth $4/ea assuming no stock movement over the next few minutes.
if I put a sell order at, say $3.90 (which is slightly below market) can I be assured it will sell, or is there a chance I get stuck with my ITM options and since I don’t have 34k in my account, they become worthless.
I’m worried about the potential illiquidity of selling options right before expiration. Stock has $10 billion market cap of it matters.
Selling ITM options right before expiration
byu/Czechgrazer inoptions
Posted by Czechgrazer
1 Comment
Your call will 100% go at $4.00 with 30 minutes to go. $3.90 is free money, so it will go even faster, but never give free money. If I can buy to close a call for 0 extrinsic value, an option seller can easily sell at 0 extrinsic value.