Open Interest and Option Availability

newwurldmn · Jul 2, 2014

ggelitetrader000 said:
i am pretty it works same as stocks:

For stock trading it works like this:

highest bidding and asking price are usually displayed as:
99$ / 500 and 105$ /125 which means someone willing to buy 500 at 99$ and willing to sell 125 at 105$.

Lets stay next highest asking prices lined up like this:
100 @ 106$
200 @ 110$
1000 @ 112$

If you purchase 1000 of this stock then, you will be buying
125 of them at 105$ and
100 of them at 106$
200 of them at 110$
525 of them at 112$.

You can see these lined up ask/bid quotes using more advanced trading platform.
I believe those defined as Level II or more.
Hope I am explaining right.
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Except that generally if 125 are posted on the offer, you can trade up to a thousand at that price.

smile · Jul 3, 2014

newwurldmn said:
Except that generally if 125 are posted on the offer, you can trade up to a thousand at that price.
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I assume this is true only for stocks that trade the highest option volumes. Maybe the top 100 or 200.
Is that what you are referring to here?
Or is this true more generally than that?

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Open Interest and Option Availability

newwurldmn

smile