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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: space cadet who wrote (3533)	10/5/1998 3:33:00 PM
From: Blacksmith	Respond to of 18998

>I have found the same problem as Cramer. You see, when you buy >these options they are cheap. In fact, I believe that if they >are under $2 then the maximum spread allowed is 1/4. If the >option now goes up in price the spread widens substantially. I have often wondered about that. I find that for a stock where the price is not moving, if you try to buy or sell option between the bid and the ask, you will never get a fill (unlike trading equity trading where you eventually will). It seems that someone is making a tremendous amount of money on the difference between the bid and ask.