Incredibly Wide Bid Ask on SPX contracts

Discussion in 'Options' started by arizonadreamer, Oct 24, 2008.

  1. Did anyone notice the huge spread on the SPX options this morning?


    We're talking 40+ point spreads.

    For example, the Nov 800 call was bid 80 ask 120. It may have been even wider at times.

    This is a new world.

    Good luck to all.

  2. Hi AZD,

    As you know, those quotes are to be ignored. But if it's 80/120, you can enter an offer at 110 and you never know if a market order will hit your offer.

  3. Hi Mark,

    Yes, I've seen that happen from time to time. :D

    What was interesting today is how difficult it was to determine where the "true" market was. Spreads 40 points wide, 12 points wide, sometimes 6 or 5.80 or 5.00. It kept changing, keeping me on my toes.

    And if one were to average the bid/ask to arrive at the mid, some strikes seemed "mispriced." For example, the Nov 1105 call might be quoted HIGHER than the Nov 1100 calls.

    All very interesting.


  4. spindr0


    Did you see the trucks that they were driving through them ???

  5. Spin,

    Good to see you are still around.

    How have you described these spreads in the past?

    "Grand Canyon" size spreads if my memory does not deceive me.

    I hope you have been bringing in some pizza money with all this volatility. :)


  6. spindr0


    Hey AZD,

    LTNS. Actually, I used to call them Holland Tunnel Spreads... Big enough to drive a truck through!

    Nahh, no slices of pizza this year... I kept racking up beer tabs to Pantheon so this year, I decided to buy the pizzeria :)