Price discovery on wider option spreads

Discussion in 'Options' started by smile, Nov 8, 2009.

  1. dmo

    dmo

    How do you figure that?

    If the market is .60 bid at .70, and someone puts in a bid of .65 for 1 contract, and that bid is hit, the market goes back to .60 bid at .70 (provided no new bids or offers come in).

    Once the .65 bid is hit, it is gone.
     
    #11     Nov 10, 2009