new to this forum but not new to option trading. Got a question maybe you can enlighten me on. When an option is trading 0.05 / 0.10 bid-ask, and if I persisted with my limit price of 0.05 to buy, sometimes I am able to get the 0.05 price. Does that mean the market temporarily shifted to 0.00/0.05 ? A more likely scenario is the options were bought up by market maker, and he somehow "let" me have it for $0.05. In last trade day and out of money, I can see market maker firm unloads "useless" options on a speculative buyer, but this happens with plenty of time left to expiration (like weeks). After it sold to me, the bid/ask maintain at 0.05 to 0.10. So how did that happen ?
Posts: 130 | Registered: Jul 2005
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Buying on the bid is what it is all about. Forget Market Makers. The bid is what you are someone is willing to buy for and the ask itwhat they will sell for.
Most stocks and options, not including Pinks have narrow spreads which show the orders that are in line.
Your fill on the bid wha just someone wanting to get out for .05. The reason it stayed with a .05 bid was that their were others in line to buy at .05.
Most times I buy options on the bid or between the bid and ask.
Last week or the week before I bought ZP on the bid at 1.07 and sold the next day on the ask for 1.20 or so.
Find wide spreads and try getting in just above the bid and selling just below the ask.
Posts: 3417 | From: Cleveland, Ohio | Registered: Jan 2000
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