Wide Bid/Ask Spreads = Stay Away?

Ever since they started the penny pilot on options, market makers are probably trying to make it up on the other options classes.

If you don't like the spread, trade the penny pilots (QQQQ, DIA, MSFT, AAPL, etc.) or just try to do mid market + .05 for buying and mid market - .05 for selling. Or, better yet, get a theoretical pricing calculator to see what they're seeing.
 
When splitting the spread I use the option modeler to give me the hypothetical price. I know from experience a bid to buy below that price is not going to get filled unless the underlying starts going down. I almost always get filled if I bid a little above the model price. Now this is for trading options on the OEX which has a wide spread, but decent liquidity. If liquidity is zilch, I stay away unless the underlying is taking off and I'm willing to buy at the ask.
 
With a chart like this I would buy the calls and forget about the $1.40 bid/ask spread. This stock has been making some big moves.

micc.jpg

MICC one year chart
 
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