SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Tech Stock Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: sean sanders who wrote (58330)2/1/1999 11:31:00 AM
From: otter   of 58727
 
My two cents:

Any option listed with a price on it is, by definition - liquid - although at a price you might not appreciate. It's the role of the market maker to ensure liquidity - and accept the trade if there isn't a third party at the time.

Typically, when you buy an option, you buy it at the ask price and when you sell it, you sell it at the bid price. Same as with stocks. I suspect that thinly traded options have somewhat more room for negotiating price than more highly traded options - The spread between bid and ask is greater than with more heavily traded securities.... But remember - the spread is how the MM makes $. If you want to buy an option at a defined price, you should make a limit order just as you do with any other security.

You issue a market order, you guarantee that you buy what you want to buy at the market price the instant the order is executed - which may or may not be the same as the price quote you just received. I've had it all three ways - at - slightly over - and slightly under the ask price. The only way to stop that is a limit order - but the downside is that it might not be filled........
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News