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Strategies & Market Trends : Options

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To: ljbein who wrote (2139)2/3/2000 9:32:00 AM
From: Jill  Read Replies (1) of 8096
 
Hi Lorinda, Ihate CBOE and use dreyfus (in our header) all the time, I find CBOE hard to read. But it looks to me like you are simply seeing calls on one side and puts on the other, and the bid and the ask. That's the buy and the sell. T here's always a difference, what they call a "spread." I.E. this is what people are supposedly willing to spend to buy for this option, and this is what people are supposedly willing to sell it for. Think of it as a negotiation btw. an imaginary buyer and seller. When you trade them, you most likely want to put a limit order in that is halfway between the bid and the ask, mostly for discipline's sake if you're trading small amounts, but for larger trades it actually makes a difference to profit.

When you see a HUGE discrepancy then it is most likely what others on the thread have pointed out--some are references to earlier options that have split.
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