When a request or problem is described, this phrase is used to tell the person that what they need or are requesting is simply not possible/available and probably won't be in the near future. An "urban" variation of "out of luck".
Hey, let's see how many times we can just run across the fucking road with our eyes closed...
You first Bro. I wanna see what happens when you run Out of Luck.
This is a variation on the more time honored "shit out of luck". It is an even more adamant reference to the fact that the person being addressed is in a bad position with no obvious or readily available resolution. The phrase also has a very succinct internal rhyme and is therefore preferred by the more poetic users of 'colorful metaphors'.
Jill: Can I borrow your bike to go down to the grocery store? I need to get some feminine products RIGHT NOW!
Jack: Sorry, my bike was abducted by aliens, you're fuck out of luck!