I've been looking at LSTR options the past couple of days, and I'm surprised the bid/ask spread is so large. Only one exchange handles them, but still - the spread is along the lines of 3.20/3.90. Are there any rules about how large a spread can be, or can the specialist do whatever he wants?
limit to max spread?
- Thread starter loufah
- Start date
That is a huge spread! I don't think there is any regulation about spreads, because it is simply the difference between what the maximum price someone wants to buy it for and the minimum price someone will sell it for.
You can download options software to compute the Black Scholes value of the option based on past volatility. You could also put your own bid or ask in -- you don't have to buy the ask or sell the bid.
Of course, you may not get filled -- but that is quite a spread. What option is that?
You can download options software to compute the Black Scholes value of the option based on past volatility. You could also put your own bid or ask in -- you don't have to buy the ask or sell the bid.
Of course, you may not get filled -- but that is quite a spread. What option is that?
Aphie is right. Unless you have some incredibly good reason to do so (and that reason can withstand an SEC investigation), avoid these roach motel options.
Knew guys that traded out of Vanuatu. Or at least they were incorporated there. They operated out of Monte Carlo. All about taxes on both ends. They tried Fiji first, but the govt. was not cooperative.
They set up a trading company in the US. (I unfortunately worked for them and got ripped off). What they did was set it up so that 95% of the profits from the American Corporation went to the Vanuatu corporation as a "consulting fee".
Sad story. Nice places though
