LogFAQs > #941786174

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TopicStock Topic 7
masterplum
07/07/20 7:04:51 AM
#348:


red sox 777 posted...
The one thing that sticks out to me as someone who doesn't trade options and knows very little about BBBY is that the spread between the bid and ask on that looks quite large. Is a 20% gap between the bid and ask a normal thing for a put spread like this?

Yeah option spreads can get huge, especially for options that are far out or in the money. Also consider that because this is a spread it really is two simultaneous options so the spreads add on to each other.

usually its kind of a game to see if you can get a trade in the middle.

i think I would offer $1 per contract

so my break even after commission would be $11.47. If the stock ends below that I make money, above that I lose money.

but that just feels like a massive gulf from where the stock currently is if it is priced appropriately.

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