Buying an Option with a premium lower than the Bid Price

If you enter a bid, and nobody takes it - absolutely nothing happens.

This applies to any and all instruments (options, futures, stocks, whatever).

It's quite normal that people put in lowball bids and just leave them sitting there. If they fill - great. If they don't fill, no harm done.

I am going to assume you are talking about a call option here.

What happens if the bid is unsuccessful and still below strike price when it expires?

If the bid is unsuccessful, then you would not own the option and the bid would expire with the option. However, you need to be careful. Shortly before the expiration, a savvy stock owner may fulfill your bid provided it is sufficiently out of the money. You could be paying for an option with no time value and no intrinsic value.

And what happen if the bid is unsuccessful and the Strike Price is reached?

You still don't own the option and it is likely the bid and ask prices will increase as the stock prices comes closer to the strike price.

I would advise against allowing bids to stand on options for more than a few hours. The nature of options is quick trades and as such long term bids can really harm you.

• $272 = share price
• $275 call (?) is $9.00 x $10.00

If you place an order to buy at $9.10 and you are the best bid then you'll get a trade execution if a counter party is willing to sell the contract to you at your $9.10 price. If no one is willing to transact at that price then you do not buy the option and it doesn't matter what share price does subsequently because you have no position in the option.