Buying puts or calls volume open interest question

Discussion in 'Options' started by J Ski, Sep 24, 2011.

  1. J Ski

    J Ski

    Suggestion wanted on simple buy of put or call.
    The volumes don't seem very high even on the options with a lot
    of open interest.
    So,if you buy the put and the stock price drops, then
    the option price should rise.
    Can you get out of the position?
  2. You can get out because the MM has a responsibility to make the market. But at what price? He can put up a Holland Tunnel wide B/A spread and rip you. That may not mean much if you make several pts on the trade while dropping 20-30+ cts on slippage but over the long haul it's just another impediment making it harder to succeed.
  3. J Ski

    J Ski

    Ok, thank you. I know it was a simple question and I feel dumb
    for asking it now.
    If it was easy to buy the put on a stock you could tell was going to
    drop, then there has to be a catch, otherwise it would be too easy.