When an option is deep in the money, the time value of the option is essentially zero, and the option's value is primarily intrinsic value. In such cases, the option's price is often equal to or very close to its intrinsic value1.
- No Bid on Deep ITM Options: If an option is deep in the money and there is no bid, it typically means that there is no one willing to buy the option at the current strike price or higher. This can occur because the option's time value has decayed away, leaving only its intrinsic value.
- Addition of Bid: It is possible, but unlikely, that a bid will be added to a deep ITM option on expiration day. More likely, the option will either be exercised or allowed to expire worthless if no bid is present.
In conclusion, if an option put with no bid falls heavily in the money early expiration day, it is unlikely that a bid will be added to the option. Instead, the option may be exercised or allowed to expire worthless, depending on the circumstances and the preferences of the option holder.