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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: tejek who wrote (110164)5/10/2000 3:54:00 PM
From: Goutam  Read Replies (2) | Respond to of 1583560
 
Ted,

< There has been a big spread between the bid/ask prices on shares....is there any relation?

I don't think so. I think it was due to great demand for the AMD call options. Based on my past experience, when you don't have the actual buy and sell orders within certain range, I believe the options market maker sets the BID and ASK prices based on whatever model they use. So, it is possible that there may not be any actual sell orders at the ASK price quoted by the option's exchange. Today, AMD Jan,01 120 call options ASK hovered around $11 and $11 1/8 (when I placed the order), but about 1000 options were bought at $11 1/4 and $11 3/8 (I had mine at the ASK price of $11). I got my order filled only after raising the limit to 1/8 above the ASK .

Goutama