The spread has since narrowed to only $.10 since the orginal post a day after SNDK earnings when IV was still high. Today those $2.85 calls are worth $3.30.
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SNDK $45 August Call
- Thread starter qll
- Start date
The spread has since narrowed to only $.10 since the orginal post a day after SNDK earnings when IV was still high. Today those $2.85 calls are worth $3.30.
Dude, you're worrying about pennies and losing out on thousands of dollars in PROFIT! Forget about the spread between bid/ask, just buy some options!Quote from qll:
i did not spead as in "option spread".
i meant spread as in the difference between BID and ASK. how could I make money by buying a call then close the call and pay 8% to the market and make a profit? 8% is HUGE cut by the market.
is option's BID/ASk difference always that big?
With $1000 maximum risk, you can pick up 6 Aug-47.50 calls for $1020. When SNDK moves to about $50/shr, your options will be worth about $2000. At $53/shr, your options will be worth $3500. Spread of +/- 60.00 isn't that big a deal. Why are you worried about pennies?
Quote from qll:
45.00 SWFHI.X 2.65 1.50 2.65 2.85 6,912 12,610
I rarely use options.
I use $150k in SNDK. My stop loss is $1000.
I want to risk the same loss in options. What should I do?
The spread is so huge on this at money call. 20c or 7.5%
Is there a way to narrow the spread? Just place a passive order to wait the counter part to take my order? Just like scalping a stock?
By the way. any site providing option charting?
I use yahoo, and they don't have historic price/volume on options.
Quote from qll:
i did not spead as in "option spread".
i meant spread as in the difference between BID and ASK. how could I make money by buying a call then close the call and pay 8% to the market and make a profit? 8% is HUGE cut by the market.
is option's BID/ASk difference always that big?
Quote from qll:
sndk 51.2 now aug 18th.
another good call by ME.
haha
Your first two posts show you were very unsure of what was going on and unfamiliar with options. If you bought them you did very well, but your posts were unclear on if you entered a position or not.
No ET time stamp on open and closed positions means no position held.