Is this free money?

I'm surprised to see the Jun $1 puts bid/ask at .90/.95. I figured as far in the money as these are they would be higher.

TT

 

Why? The underlying is priced at $0.60. There's only 0.40 of intrinsic value.

 

You're right lol. I guess I was thinking that since the underlying is basically guaranteed to go to 0 that the option would be fully priced once it went in the money.

Thanks,
TT

 

I asked customer service at IB how these options would be settled. Based on their response, I sold all but one of the puts. I'm going to let that one ride to see how it settles out.

 

Just to update. These have been delisted to the pink sheets. Now trading under symbol WHXT.