Hi B2, again the answer relates to LIQUIDITY or more importantly where it lies ...
LIQUIDITY (where Buyer/Sellers exist) is mostly concentrated 'at-the-money' ... hence our strategy of trading 'toward the money' as it were so as to ensure a supply of traders when we want to CLOSE our trade.
Trading the LIQUIDITY is an important part of Warrant/ETO strategy so as to avoid getting caught high and dry as it were.
When trading ETO's and no Bid/Ask present you can ask your Broker to get 'a quote' for you from the MM. You won't like the quote generally but if you need to get out you can.
Again, learning to trade the LIQUIDITY is part of the derivative exercise. It is generally accepted that if you get caught with the MM you have made a bad trade as the Market has moved away from your position.
For ETO's you can register with Commsec for FREE and get 'real time' ETO quotes accross the range of offerings ... this allows you to view where the action or LIQUIDITY lies and plan your trade accordingly.
Again, suggest you set up a spreadsheet and 'paper trade' for awhile to see how you go ...
