Wide bid-ask spread on liquid options

Discussion in 'Options' started by a529612, Jun 18, 2007.

  1. Say the spread is 0.1 or 0.15. Does it mean the underlying stock is about to make a big move soon?
     
  2. ktm

    ktm

    That's possible. Even on the index futures options, MMs will back away before known news hits...some mornings around 8:25 or so. There can be too much risk to sit close to the money when a move is likely imminent.