Most options I trade have a minimum Bid of $.05, even when the option is near-worthless (e.g. far OTM near expiration). However, as I understand it, that $0.05 “minimum” is actually just the lowest value that will display to the market.
Consider a near-worthless option contract with a current spread of: No bid : 10 x $0.05
Let’s say I want to close a 10-contract short position for $0.01…IB’s TWS does indeed let me submit a Buy order for 10 x $0.01…except…