What about ITM?
Creating a synthetic short stock with long call(s) and long put(s) possible?
- Thread starter earth_imperator
- Start date
Spread is irrelevant if there is some slight volume, b/c then one just can place a MidPrice limit order between Bid and Ask, and it necessarily has to get filled, when as said there is some slight volume.
Why does it have to get filled at MidPrice? Your other side of the trade, typically a market maker, is not going to fill your ITM order if she doesn't get a profit from the spread. You are more likely to be filled at ask when buying and bid when selling. That's where the volume comes from.
I'm wondering if we are being trolled
It's the third thread in a week about covered calls and whatnot. You are not being trolled...You are being destroyed mentally by a simpleton who does not know WTF options are.
He's smart that way. Wear you down until you give him the answer he WANTS, not the answer that is real. He apparently dismissed Charles Schwab's answers. So what hope do YOU guys have to help this person?
Waste of time and breath IMHO.
if you enter an order at mid but the spread is still wide, many times there will be algos trying to get in front of you to catch those few real market orders. If the underlying doesn't go your way (I.E. against you), you could be left waiting for a long time.