i heard this on cnbc the other day. they said sell a 134/135 call spread on the video it shows the 135 calls are 2.45 but the 134 calls are just 1.90. can a 135 call be costlier than a 134 call both for the same month expiration? please help me understand what i am missing here. here is the link to the 2 minute video. http://video.cnbc.com/gallery/?vide...nUGFnZSI6IjEiLCJzeW0iOiIiLCJzZWFyY2giOiIifQ==
I can't see the video but no. a higher strike call CANNOT be higher in price than an lower strike call under any circumstances. Perhaps they meant puts, or they are different maturities. Bid ask in the SPY is only a few cents. I think they got the prices mixed up. Sounds about right for a 1 dollar callspread to be about 65 cents.