Abandon an Option

To abandon an option means to consciously choose not to sell or exercise it before it expires. When an option is far out of the money and close to expiration, there is little chance that it will get in the money soon enough and its price in the options market will probably be very low (or there may even be no bids). Sometimes it is better to just let it expire worthless (because of the bid-ask spread and transaction costs), sometimes you have no other choice, as no-one wants to buy it from you for more then zero price.

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