When you buy a covered call as a strategy you put a limit order in for the difference in some platforms. Eg Buy 200 stockA at 50 Sell 2 March 20 45 call for 1.9 Limit shows up as something like 48.1 bid or 48.2 ask Obviously I want to sell the call for as much as possible so where do you put the buy limit in since one is buying stock, one is selling options. Ideally I want to buy stock at bid 50 and sell the call at 1.9 ask
I don't have a clue on the stock - but the option will have to be sold at the bid, or better price if you can get it.
If someone submits a market order, it’ll most likely be routed to someone paying for that order or a dark pool before it goes to you. Market maker has his bid/ask at 2.00/3.00. You join that ask at 3.00. Some retail sends their market order(less likely in options), they route it to their buddy and say hey do you want this order? He says sure and sells at 2.95 giving them a price improvement so they can beat the NBBO. This market maker is also in queue at 2.00/3.00 along with you and the other market maker except he’s cut his spread. He sold for 2.95 but can buy back at 3.00 leaning on yours and the other market makers orders at 3.00. Cutting his exposure. This happens all day. While you get infilled until your limit is sitting and mid most likely. Your counter party, most likely a market maker isn’t going to take your trade until its in their interest.