Hello I am fairly new to options but have dedicated 5 years to forex. I was wondering if it was possible to buy a call or a put for less than the bid or ask price. Possibly splitting the spread in half? Thank you for all your help it if much appreciated. Best Regards, Kelton
If I understand correctly your question, you can certainly place an order at any price you wish: once you get someone matching your offer, you are executed. Moreover, consider than sometimes better bid and ask prices are masked, so you can get instantly a better deal than the one you offered. Finally, some brokers like IB route your order smartly in order to exploit alternative markets for better prices. Hope this helps. Arturo
Yes, unlike FX, the option market in the US are an auction market. You bid or offer at your price. Assuming your broker routes your order to any of the many option exchanges, you have the possibility of getting an execution from another customer or firm order trading at your price. Because market are so fragmented now, you can't assume because there are options trading at your price, that the trades are at the exchange where your order is or that there are not orders ahead of you.
================= Kbuddy; Yes, generally speaking,.And most any derivative can be bought below ask.[or above ask ,LOL] I saw several turtles crossing the road today,, midpoint of road. Especially buy in a buyers+ volume market; but sellers market, you better buy@ sellers price, if you want in Wisdom is profitable to direct..... Same thing in real estate; realty derivatives==============================