Trading stocks that have wide spreads

tomkat22 said:
TKR looks fine to me.Only a .50 spread right now in pre-mkt. and a really small ATR for a $75 stock. Average volume is a little lite for my taste but otherwise looks fine.
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Be sensible. The OP is a beginner and you put in an acronym in your reply.
 
nwoptions said:
TKR is on Friday's list. Its bid is $49 and the ask is $79. That's a $30 spread. Would I be insane to trade such a stock?

I learned that when trading options, I should trade options that have a tight spread of 5 cents per share.
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Was this bid / ask spread from the IBD ? Looking on TOS on the weekend I see the last price is 76.89 and the bid/ask is 75.11/78.42 so the spread is closer to $3 not $30 so I would say that is reasonable Most of the time you try to get mid price or better
Don't confuse the stock with options I don't think you will find a stock with 5 cent spread

I would use some TA and find an entry price where you would not mind buying it and place your buy there and wait for the stock to meet your price rather than chasing it up or overpay because of the wider bid / ask

From the chart TKR looks like a slow mover and did not move much since last year so I would wait for the price to come down to around $70 which looks like a recent support and buy it there at the mid price I would not worry too much about the spread unless you are day trading it
 
That’s a helluva spread, even for stocks! I reckon if you don’t have a strategy that involves trading at a high rate, then it’s fine. Otherwise, it’s simply not worth it.
 
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