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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: RCVJr who wrote (6012)12/6/1997 1:02:00 AM
From: Greg Higgins  Read Replies (1) of 14162
 
RCVJr writes:

As you can see, while the last price is different, the bid/ask prices are within an 1/8 of each other. These options are traded on different exchanges so the prices may flucuate but the bid/ask will always be close, rarely will you see more than an 1/8 difference.


But sometimes, an arbitrage situation will present itself. If you're very, very nimble you can buy on one exchange and sell on another for a locked in profit.

Saw such a situation last week on HQ options. Folks in PSE were bidding more than the folks in PHL were asking. My broker isn't
nimble, unfortunately. Situation lasted almost 2 minutes, however.
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