Options Wonderland

[hoticetea]

New to option trading(question)

Hi everyone,

I have another question to ask. I bought 3 contracts of CMI Dec 95 PUT few weeks ago at $1.8 which will be expired this friday. Now the contracts are worthless. The contracts are trading at 0.1/0.05, and the shares are trading at 117/115. So what should I do with those contracts?

a)Can I/Should I just let those contracts expired without doing anything? Will the contracts be gone automatically from my account on the next day of the expiration day? Is there any penalty for this action? (Just lose the principal)

b)Should I spend another transaction fee to sell those contracts before/on the expiration day?(lost principal + transaction fee)

c)Should I exercise those contracts? (lost the principal + the difference between the current trading price and the $95 strike price? I don't think so, right?)

I really appreciate your help.

hoticetea