No. of Recommendations: 2
At the moment that contract has a bid/ask of 135.00 / 139.00 and an in-the-money value of $136.38. So selling the option at $135.00 would get a holder less money than exercising the option and selling the stock at today's price.
The reason there is such a wide bid/ask in this case is because it is thinly traded. But in reality, had the holder of that option put it up for sale, they wouldn't do so at $135, but would more likely split the bid and ask and try for 137 which would have a decent chance at being accepted, maybe not immediately, but perhaps after a few minutes or a quarter hour. Considering that the ask was 139, a sudden drop to 137 might become enticing to many out there (including quite likely the market maker).
I sold some 460 put options today. I figured that I bought shares at $477 on Friday, so I am certainly willing to buy some more at a net price of about $455 via put exercise assignment!
