Im new to trading options. Had an extra 100 bucks in my account and thought i would screw around with options. I traded an option in MO and made a little gain (paid .90 sold for 1.30) Now i have put an order in for 11 puts for july @ .10 now here is where it gets weird...i put the order in when the bid/ask was .05/.15 figuring I might have to wait a bit, but whatever...I notice the bid/ask at .10/.15 then i see it go back to .05/15 and back to .10/15. All this time my order has not been filled. How can the Bid come up .05 when my bid is higher?
If I'm reading your statement right, you submitted a 0.10 limit order and the bid increased from 0.05 to 0.10 thus reflecting the fact that you had submitted a 0.10 bid. I'm wondering where your confusion is coming from? [edit] Ahh.. I re-read your question (more slowly this time) and understood. If the 0.05 only appeared for a minute then I suppose it could be indecision on the part of the MM. Your order was only for 11 contracts. If the MMs show that bid price then they are required to quarantee it for a certain number of contracts. On many exchanges I believe the requirement is 20 contracts. IOW, if he shows your 0.10 bid then he has to guarantee at least a 20 contract fill at that price. In order to get your order out of the way he might have considered filling it, but then changed his mind and re-listed the 0.10 bid. Just a guess.