0 bid with volume

Discussion in 'Order Execution' started by Crash the Gate, Jun 10, 2019.

  1. I'm not sure this is in the right forum but I believe it's at least tangentially related.

    I'm looking at JUN 21 TSLA puts at a strike of 95. There was volume today of 574 and I can see on IB that the last trade was at 3:53 EDT for 100 contracts. However, the bid is blank. Why is that? And secondly, if I were to put a bid for 10 contracts for 0.01 I'm assuming a trade would happen quickly as the ask is 0.01--how long would my bid remain listed after the trade, provided there are no other bidders after me?

    Please note, I have zero desire to make this trade, I'm just trying to understand the mechanics of what I'm seeing on the screen. Thank you.
     
  2. Stockolio

    Stockolio

    Bid on Option Chain is how much the Market Makers will pay for it... Ask is how much he would sell it to you for, usually end up paying middle between Bid and Ask on a Limit Bid... Don't cave, never cave, set your price, watch spread jump initially, and come down gradually until your filled
     
  3. ETJ

    ETJ

    After hours?
     
  4. Why should there be a bid, later on, to let a trade happen? If you are the only one on the bid and you get taken, and there are none left, then, what's the problem? Volume will show up and the bid will be empty.
     
  5. ETJ

    ETJ

    Equity options stop trading at 4:02 give or take - some MMs shut their machines down - some go to zero bid - either way, the venues leave the quote engines up, but you can't trade. I'll venture this was post the close.
     
  6. Robert Morse

    Robert Morse Sponsor

    Zero bid is not a real bid and has no "size". It is a place holder as the exchange systems are set up to show two sided markets. You can't bid 0.00. Once your bid is executed, it is no longer represented in any way. If you pay 0.01 or an option trading higher, it makes no difference. The market you see on your software is the current best bid, best offer and never represent any previous buyers and sellers.

    Does that help?
     
  7. Yes Robert that clears a lot up for me. Thank you very much.