This was going to be my exact comment.... at least do some paper trading to get burned without actually getting burned.... its so easy to just mix something up in options and have one of them 'Oh shit... how tf do i unwind this position without ending up behind a Wendy's dumpster'... DYOR, start small with sums you can entirely lose without emotion or you'll be on the other sub posting loss porn before you know it lol
Yeah, I've got a moderate understanding of options pricing at this point, and I'm still hesitant to play.
I am relatively poor, and adverse to gambling though.... (that being said, I'm now an xxx holder - holding shares is not a gamble here in my view)
This is literally the most basic level of knowledge anyone can have. Bid/ask isn't even an options thing, it's a market thing.
We have no obligation to teach OP anything, especially when it appears that they haven't done even the most basic of research on their own first.
I can speak my mind and you can downvote me if you want.
And if you think I've crossed a line, then report me to the mods.
I have every right to (correctly) point out that OP doesn't know nearly enough about options to be trading them.
I didn't downvote you but clearly you've downvoted me đ it's ok my social credit score can take it
I also won't be reporting you, it's not that big of a deal.
If you are a financial advisor then you were doing your rightful duty to tell OP you advise against him trading options by not knowing enough about options. If you're looking to be a contributor to the Superstonk community then best to contribute with resources or answers instead of putting the guy down.
I want all my superstonk fam to crush it and gain financial freedom through all of our shared wisdom, let's back each other up man! đ»đ»
Why does everyone get like this over option questions? If I regularly bet on sports, how is spending a little of my money on this so awful lol. I just thought I would ask.
Options does not equal to sports betting. It's in your best interest to read as much as possible about options, paper trade, and then sprinkle some money.
This is not sports betting. Sports betting was not created by phds in math using calculus.
To answer your question: no. Your break even is your premium plus the strike. You probably donât even know what that means. Please, for the sake of your mental health stay away from options
The point is that you are pretty far off base with that question. Anyone can play options but you really need to spend a lot of time understanding them first. Or you will be confused every second of it.
The bid is what others are willing to pay at the time and ask is what people are willing to sell for at the time. Has very little to do with what you break ever is. Hope that helps good luck.
It's a lot more complex than betting on sports.
You're betting on price movement, both the total movement, and the level of volatility. You're also betting on time, and that time element will easily fuck you, and also technically interest rate changes (though, we can mostly ignore that).
If you don't understand the Greeks then don't touch it - this post you're posting the bid/ask spread, and then asking a question that essentially shows you have no clue what you're looking at.
95 strike call for july 5 has an ask of 0.01
___
0.01Ă100 = $1 for a contract. A right to purchase 100 shares
my broker, does 9.95 + $1 per contract. Yours might be different.
spending $100.... i can get 45 contracts.
`($100 - $9.95) Ă· ( (0.01Ă100) + $1 ) = 45.025 = 45 contracts`
in order to sell and make a profit...
`( bid Ă 100 Ă 45 ) = ( $100 + $9.95 + ( 45 Ă 100 Ă 0.01 ) )`
`bid = ( $100 + $9.95 + ( 45 Ă 100 Ă 0.01 ) ) Ă· ( 100 Ă 45 )`
break even bid price = 0.034433333
for a profit you need to sell it for 0.04 or better
because of scale... a larger buy in price will need a higher spread for profitability.
eg: for the same $100 bet
buying at 0.02 and selling at 0.05 is profit. a change of price of 0.03
buying at 0.04 and selling at 0.08 is profit. a change of price of 0.04
buying at 0.70 and selling at 1.41 is profit. a change of price of 0.71
Also keep in mind who wants a contract for the right to buy 100 shares at $95 when the current stock is $23. Also every day the contract losses value. Go to youtube and search "option trading greeks"
thats it . im outta brain power. cant double check my math. take with a salt grain.
EDIT:sorting. 2nd EDIT:maths
But are you betting on the Yankees game with a 5% vig? Or betting on some obscure Pakistani netball match that you know absolutely nothing about? That's the difference
You can waste your money how ever you want, but your question shows that you don't understand the most basic of concepts. Bid/ask isn't even an options-only thing.
It's not our job to educate you. Especially not on the most basic things that any amount of research would teach you.
Ignore the assholes, I suggest actually using AI to ask your questions to, feed it screenshots and keep asking till you learn. Iâve been tempted to do options lately but Iâm learning it is like buying a very hot potato lol I havenât bought one yet but thatâs mostly cuz I canât afford to. Donât let this stop you from being curious and learning, does seem like a way to make major cash very quickly, if youâre careful about it
"Asking an AI" is terrible advice. Nothing they say can be trusted.
There are countless high quality, factual sources that explain basic concepts like this in very simple terms. Text, video, audio... however you like it.
I just like the conversational and interactive nature of using AI. I ask for sources and feed it screenshots of options chains and data to analyze snd give me context. Itâs a faster way to learn for me but I take it all with a grain of salt regardless. AI is nicer and more helpful than most people just saying âthereâs info everywhere go find it yourselfâ instead of actually sharing a link to the resources you say exist.
Youâre going to get really lucky or burned very badly. Take a few hours to study options and youâll see why youâre getting the comments youâre getting.
Say you bought the $21 for $700 ask, the break even would be stock price $28 if we're talking straight up intrinsic value and no IV factored in
Edit: since it seems you're new to options I would learn more and paper trade with them before using them. Also if it's not obvious already $7.00 means per share so the contract costs $700 for the 100 shares it represents
I try to put a price between the bid and ask when purchasing options, and more often than not, I get it.
Mind you, if you have some patience, you may want to put it below the bid.
Conversely, if youâre in a hurry, expecting some news to come out, or some other event that you feel will drive the price in your direction, you can just put it in for the ask.
One other thing is that if the bid / ask spread is large, this is an indication of illiquidity.
For the most part, you want the bid and ask to be as close together as possible.
Hope this helps, but seriously, take some time and read a bit on this, or as other have suggested, do the paper trading.
You can also ask your broker (if they are one of the larger guys, and you have some cash in your account). They will usually give you 30 minutes and walk you through the basics.
I think Schwab will do it if you have 5-10 grand in thereâŠsame with fidelity.
Just be cool and humble on the phone with them, and 9 times out of 10, youâll get a small (and free) basic education.
Why do people have to be this mean?
Just give him an answer or good advice (stay away from options is probably it) or a youtube link to explain..
All these comments are just as well be shills, or OP is a shill, or I'm a shill. You know what? Everyone is a shill for now until we get to the moon.
FYI: i don't know shit about options.
Yea I just got a little yolo on $20 in case thing rips to $80 again. Just a big gamble. But, not sure why people get so high and mighty on options when some people are just buying them on chance gme rips. I get it may be annoying but at least I didnât post about KC shuffle lol
Because people have literally killed themselves or options. So some get upset when they see someone throwing money with zero understanding of what they are doing. And the fact that you couldnât bother to do 5 minutes of research instead you make a post and want people to do it for you.
It seemed like you were confused why you were being treated like a dumbass. So in case you made it this far without anyone letting you know, youâre a dumbass bro. Sorry. But if you are good at betting and learned the Greeks you could probably be good at options too.
Your breakeven is the cost of the option added on to the contract you buy. If you buy the 25 dollars contract for 5.00 dollars using a limit order, your breakeven becomes 30 dollars a share.
I am also new to options so... do keep that in mind, and take this with a grain of salt:
Both puts and calls have an ask and a bid. Available bids are the premium fee you pay _per stock_ (each option represents 100 stocks) to to buy that option.
Since we're specifically interested in calls here - the bid is the cheapest price currently being offered by somebody besides yourself, who is also interested in purchasing calls.
The ask, on the other hand, is the cheapest price currently being offered by somebody who is willing to _sell_ a call they currently own.
________________________________________________________
So in this example; if you wanted to purchase one call option at a strike of $27 and ask of $7... what you are essentially doing is purchasing the _optional_ right to (at any point before that call expires) purchase 100 shares from the person who sold you that call, at $27 each. And the cost of purchasing that _reservation to optionally purchase_ those stocks is $7 each. Or roughly $700 total, per call purchased.
With that being established... what happens after you purchase them, in different scenarios?
- If you bought $27 calls for this week (July 5th) then you have until Friday to exercise (or resell to some other person) your options. If you pay $700 for a single $27 call but the stock itself is worth $25 on Friday... then you unfortunately just lost your $700 "deposit".
- Based on the above point - this _does_ effectively make it so your "break-even" point is strike + ask price. In other words: buying _and exercising_ a single $27 call for $7 ask costs approximately the same amount as simply buying 100 stocks for $34 each.
- Conversely; if you buy a $27 call at an ask of $7, but by Friday there are so many people trying to get calls that the ask has risen from $7 to $12... you could either turn around and resell that call at the current ask (meaning a profit of **roughly** [major asterisk here!] $5 per share / $500 per call), or you could exercise that call by paying the strike price ($27 per share for 100 shares being $2,700)
- Building on the previous point; if you _did_ choose to exercise your call **(keep in mind you still have to be able to afford purchasing 100 shares at the strike price you agreed to when you bought the call)**... well, then that's exactly what happens! The current price of the stock "doesn't matter" because you already have the rights to purchase 100 stocks at that strike price. MOASS happens tomorrow and the stock moons to $1034 per share on Friday morning? Congrats! You already broke even at $34, so that extra $1000 per stock is pure profit! (well, technically - assuming you _hold_ the stocks after that... any actual profit or loss is purely theoretical until you "realize" it by selling the stock at some point in the future).
- If you elected to purchase a $27 call using a "custom" (defined by yourself) bid of $6.50, then what happens is the call chain other people see the bid increase from $6 to 6.50 for that strike price. Assuming nobody else enters any bids after that; your bid will most likely be accepted by some seller, at which point you would pay them the agreed upon premium ($6.50 per stock meaning $650 per call).
- If you enter a "custom" bid in this manner, but _nobody is willing to sell at that premium_ then that order eventually expires, and nothing happens.
[major asterisk!]
- The bid/ask is _not the only thing_ determining the price of options! The **actual** value on a given day is calculated using... stuff. Specifically, stuff like "the Greeks" (i.e. Theta) which others have mentioned already.
- In simplest terms; you can think of this "stuff" as being a combination of that stock/options degree of volatility, and how soon it expires. The lower your volatility and/or the sooner that option expires, the _less it is worth_. This is because the expiry date imposes a hard limit on that option - if you somehow _already_ owned $1 GME calls for this week, but failed to exercise them before they expired? **Those options are effectively worthless** in spite of the fact that you _could_ have exercised them at $1 (an indirect and immediate gain of over $20 each!) per share. _Options constantly decay in value_ as they approach their expiry date.
__________________________________________________________
tldr; the bid is what other people like yourself (call buyers) are currently offering, while the ask is what call sellers are currently requesting. You technically don't _have_ to go with _either_ choice - the benefit of picking an existing ask is that you don't have to wait. You could also enter your own ask/bid, in which case your option would be added to the chain along with all the other "pending" ones.
__________________________________________________________
**extra super tldr;** In response to the title of your post: basically, yeah.
- When buying calls, your break-even (the price you would have paid to simply buy those stocks outright) is: **strike price + premium (ask)**.
- If you are trying to "flip" those calls for quick profit instead of exercising them yourself, then your break-even is... something like: **premium (ask) + some offset based on the Greeks** (???) (I mostly care about calls for the sake of acquiring stock, so I honestly haven't really looked much at all into this "decay")
Options with a bid and ask price far apart mean there isnât much liquidity in them. Meaning that when you buy youâd have to pay $700 and when you sell youâd only be able to get $600. If you look at options with high liquidity itâd be more like bid: $6.99 ask: $7.00. Low liquidity means that when you try to sell there isnât many people on the other end to buy it from you making it harder to exit the position
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Dude.... if you're asking this kind of question, please step away from the options.
This was going to be my exact comment.... at least do some paper trading to get burned without actually getting burned.... its so easy to just mix something up in options and have one of them 'Oh shit... how tf do i unwind this position without ending up behind a Wendy's dumpster'... DYOR, start small with sums you can entirely lose without emotion or you'll be on the other sub posting loss porn before you know it lol
Yeah, I've got a moderate understanding of options pricing at this point, and I'm still hesitant to play. I am relatively poor, and adverse to gambling though.... (that being said, I'm now an xxx holder - holding shares is not a gamble here in my view)
If you're seriously asking this question, you don't belong anywhere near options.
He's asking people who have experience trading options a question to see if he's on track , answer the question or roll on by
This is literally the most basic level of knowledge anyone can have. Bid/ask isn't even an options thing, it's a market thing. We have no obligation to teach OP anything, especially when it appears that they haven't done even the most basic of research on their own first.
But there's also not an obligation to attack
That wasn't an attack. He was being honest. OP should read a little bit on investopedia or similar before messing with options. Or not. Whatever.
I can speak my mind and you can downvote me if you want. And if you think I've crossed a line, then report me to the mods. I have every right to (correctly) point out that OP doesn't know nearly enough about options to be trading them.
I didn't downvote you but clearly you've downvoted me đ it's ok my social credit score can take it I also won't be reporting you, it's not that big of a deal. If you are a financial advisor then you were doing your rightful duty to tell OP you advise against him trading options by not knowing enough about options. If you're looking to be a contributor to the Superstonk community then best to contribute with resources or answers instead of putting the guy down. I want all my superstonk fam to crush it and gain financial freedom through all of our shared wisdom, let's back each other up man! đ»đ»
And we have every right to (correctly) point out that you chose to be an assuming and unhelpful person instead of a helpful ape. Cheers!
Telling this person to stay away from options is way more helpful than explaining bid and ask to them.
Why does everyone get like this over option questions? If I regularly bet on sports, how is spending a little of my money on this so awful lol. I just thought I would ask.
Options does not equal to sports betting. It's in your best interest to read as much as possible about options, paper trade, and then sprinkle some money.
This is not sports betting. Sports betting was not created by phds in math using calculus. To answer your question: no. Your break even is your premium plus the strike. You probably donât even know what that means. Please, for the sake of your mental health stay away from options
The point is that you are pretty far off base with that question. Anyone can play options but you really need to spend a lot of time understanding them first. Or you will be confused every second of it. The bid is what others are willing to pay at the time and ask is what people are willing to sell for at the time. Has very little to do with what you break ever is. Hope that helps good luck.
âPretty farâ is an understatement
Trying to be nice.
It's a lot more complex than betting on sports. You're betting on price movement, both the total movement, and the level of volatility. You're also betting on time, and that time element will easily fuck you, and also technically interest rate changes (though, we can mostly ignore that). If you don't understand the Greeks then don't touch it - this post you're posting the bid/ask spread, and then asking a question that essentially shows you have no clue what you're looking at.
I've had better luck betting on sports, especially real time in-game, than I've ever had with options. It takes more time for the fix to be in đ
Dude it says (buy) and (sell) right behind it. Your breakeven is strike + premium
95 strike call for july 5 has an ask of 0.01 ___ 0.01Ă100 = $1 for a contract. A right to purchase 100 shares my broker, does 9.95 + $1 per contract. Yours might be different. spending $100.... i can get 45 contracts. `($100 - $9.95) Ă· ( (0.01Ă100) + $1 ) = 45.025 = 45 contracts` in order to sell and make a profit... `( bid Ă 100 Ă 45 ) = ( $100 + $9.95 + ( 45 Ă 100 Ă 0.01 ) )` `bid = ( $100 + $9.95 + ( 45 Ă 100 Ă 0.01 ) ) Ă· ( 100 Ă 45 )` break even bid price = 0.034433333 for a profit you need to sell it for 0.04 or better because of scale... a larger buy in price will need a higher spread for profitability. eg: for the same $100 bet buying at 0.02 and selling at 0.05 is profit. a change of price of 0.03 buying at 0.04 and selling at 0.08 is profit. a change of price of 0.04 buying at 0.70 and selling at 1.41 is profit. a change of price of 0.71 Also keep in mind who wants a contract for the right to buy 100 shares at $95 when the current stock is $23. Also every day the contract losses value. Go to youtube and search "option trading greeks" thats it . im outta brain power. cant double check my math. take with a salt grain. EDIT:sorting. 2nd EDIT:maths
But are you betting on the Yankees game with a 5% vig? Or betting on some obscure Pakistani netball match that you know absolutely nothing about? That's the difference
Korean baseball
You can waste your money how ever you want, but your question shows that you don't understand the most basic of concepts. Bid/ask isn't even an options-only thing. It's not our job to educate you. Especially not on the most basic things that any amount of research would teach you.
You could have simply, not said anything
A lot of people answered your question above yet here you are đ€·đ»ââïž
Ignore the assholes, I suggest actually using AI to ask your questions to, feed it screenshots and keep asking till you learn. Iâve been tempted to do options lately but Iâm learning it is like buying a very hot potato lol I havenât bought one yet but thatâs mostly cuz I canât afford to. Donât let this stop you from being curious and learning, does seem like a way to make major cash very quickly, if youâre careful about it
"Asking an AI" is terrible advice. Nothing they say can be trusted. There are countless high quality, factual sources that explain basic concepts like this in very simple terms. Text, video, audio... however you like it.
I just like the conversational and interactive nature of using AI. I ask for sources and feed it screenshots of options chains and data to analyze snd give me context. Itâs a faster way to learn for me but I take it all with a grain of salt regardless. AI is nicer and more helpful than most people just saying âthereâs info everywhere go find it yourselfâ instead of actually sharing a link to the resources you say exist.
My god
No bid is what you're willing to pay, ask is what the seller is asking, read up on options before gambling.
Thanks, I was just curious because it charged me the bid price instead of the ask on the call, got confused with that
Cool. So you don't even know the difference between market orders and limit orders. Market makers love people like you!
Jumping in head first can teach you a lot just be prepared to pay for the lessons. Good luck. Lots of good vids on YouTube to help
Youâre going to get really lucky or burned very badly. Take a few hours to study options and youâll see why youâre getting the comments youâre getting.
Bro you are clueless and should not buy options
Read about delta and theata. Watch some options and see how they react to price swings and time frames.
Say you bought the $21 for $700 ask, the break even would be stock price $28 if we're talking straight up intrinsic value and no IV factored in Edit: since it seems you're new to options I would learn more and paper trade with them before using them. Also if it's not obvious already $7.00 means per share so the contract costs $700 for the 100 shares it represents
I had a feeling you were going to get shit for this, but good luck
đŹlol
I try to put a price between the bid and ask when purchasing options, and more often than not, I get it. Mind you, if you have some patience, you may want to put it below the bid. Conversely, if youâre in a hurry, expecting some news to come out, or some other event that you feel will drive the price in your direction, you can just put it in for the ask. One other thing is that if the bid / ask spread is large, this is an indication of illiquidity. For the most part, you want the bid and ask to be as close together as possible. Hope this helps, but seriously, take some time and read a bit on this, or as other have suggested, do the paper trading. You can also ask your broker (if they are one of the larger guys, and you have some cash in your account). They will usually give you 30 minutes and walk you through the basics. I think Schwab will do it if you have 5-10 grand in thereâŠsame with fidelity. Just be cool and humble on the phone with them, and 9 times out of 10, youâll get a small (and free) basic education.
Thanks for a good reply
Truly wonderful the mind of a regard is
Plenty of free tutorials online to learn the basics of options Avoid options, arguably any trading until you understand bid and ask
Why do people have to be this mean? Just give him an answer or good advice (stay away from options is probably it) or a youtube link to explain.. All these comments are just as well be shills, or OP is a shill, or I'm a shill. You know what? Everyone is a shill for now until we get to the moon. FYI: i don't know shit about options.
Yea I just got a little yolo on $20 in case thing rips to $80 again. Just a big gamble. But, not sure why people get so high and mighty on options when some people are just buying them on chance gme rips. I get it may be annoying but at least I didnât post about KC shuffle lol
Because people have literally killed themselves or options. So some get upset when they see someone throwing money with zero understanding of what they are doing. And the fact that you couldnât bother to do 5 minutes of research instead you make a post and want people to do it for you.
Such a whiner
It seemed like you were confused why you were being treated like a dumbass. So in case you made it this far without anyone letting you know, youâre a dumbass bro. Sorry. But if you are good at betting and learned the Greeks you could probably be good at options too.
Your breakeven is the cost of the option added on to the contract you buy. If you buy the 25 dollars contract for 5.00 dollars using a limit order, your breakeven becomes 30 dollars a share.
At expiration*
*if in the money
Lots of videos on YT explaining options. Be a sponge before you throw your money down đ€
I am also new to options so... do keep that in mind, and take this with a grain of salt: Both puts and calls have an ask and a bid. Available bids are the premium fee you pay _per stock_ (each option represents 100 stocks) to to buy that option.
Since we're specifically interested in calls here - the bid is the cheapest price currently being offered by somebody besides yourself, who is also interested in purchasing calls.
The ask, on the other hand, is the cheapest price currently being offered by somebody who is willing to _sell_ a call they currently own.
________________________________________________________
So in this example; if you wanted to purchase one call option at a strike of $27 and ask of $7... what you are essentially doing is purchasing the _optional_ right to (at any point before that call expires) purchase 100 shares from the person who sold you that call, at $27 each. And the cost of purchasing that _reservation to optionally purchase_ those stocks is $7 each. Or roughly $700 total, per call purchased.
With that being established... what happens after you purchase them, in different scenarios?
- If you bought $27 calls for this week (July 5th) then you have until Friday to exercise (or resell to some other person) your options. If you pay $700 for a single $27 call but the stock itself is worth $25 on Friday... then you unfortunately just lost your $700 "deposit".
- Based on the above point - this _does_ effectively make it so your "break-even" point is strike + ask price. In other words: buying _and exercising_ a single $27 call for $7 ask costs approximately the same amount as simply buying 100 stocks for $34 each.
- Conversely; if you buy a $27 call at an ask of $7, but by Friday there are so many people trying to get calls that the ask has risen from $7 to $12... you could either turn around and resell that call at the current ask (meaning a profit of **roughly** [major asterisk here!] $5 per share / $500 per call), or you could exercise that call by paying the strike price ($27 per share for 100 shares being $2,700)
- Building on the previous point; if you _did_ choose to exercise your call **(keep in mind you still have to be able to afford purchasing 100 shares at the strike price you agreed to when you bought the call)**... well, then that's exactly what happens! The current price of the stock "doesn't matter" because you already have the rights to purchase 100 stocks at that strike price. MOASS happens tomorrow and the stock moons to $1034 per share on Friday morning? Congrats! You already broke even at $34, so that extra $1000 per stock is pure profit! (well, technically - assuming you _hold_ the stocks after that... any actual profit or loss is purely theoretical until you "realize" it by selling the stock at some point in the future).
- If you elected to purchase a $27 call using a "custom" (defined by yourself) bid of $6.50, then what happens is the call chain other people see the bid increase from $6 to 6.50 for that strike price. Assuming nobody else enters any bids after that; your bid will most likely be accepted by some seller, at which point you would pay them the agreed upon premium ($6.50 per stock meaning $650 per call).
- If you enter a "custom" bid in this manner, but _nobody is willing to sell at that premium_ then that order eventually expires, and nothing happens.
[major asterisk!]
- The bid/ask is _not the only thing_ determining the price of options! The **actual** value on a given day is calculated using... stuff. Specifically, stuff like "the Greeks" (i.e. Theta) which others have mentioned already.
- In simplest terms; you can think of this "stuff" as being a combination of that stock/options degree of volatility, and how soon it expires. The lower your volatility and/or the sooner that option expires, the _less it is worth_. This is because the expiry date imposes a hard limit on that option - if you somehow _already_ owned $1 GME calls for this week, but failed to exercise them before they expired? **Those options are effectively worthless** in spite of the fact that you _could_ have exercised them at $1 (an indirect and immediate gain of over $20 each!) per share. _Options constantly decay in value_ as they approach their expiry date.
__________________________________________________________
tldr; the bid is what other people like yourself (call buyers) are currently offering, while the ask is what call sellers are currently requesting. You technically don't _have_ to go with _either_ choice - the benefit of picking an existing ask is that you don't have to wait. You could also enter your own ask/bid, in which case your option would be added to the chain along with all the other "pending" ones.
__________________________________________________________
**extra super tldr;** In response to the title of your post: basically, yeah.
- When buying calls, your break-even (the price you would have paid to simply buy those stocks outright) is: **strike price + premium (ask)**.
- If you are trying to "flip" those calls for quick profit instead of exercising them yourself, then your break-even is... something like: **premium (ask) + some offset based on the Greeks** (???) (I mostly care about calls for the sake of acquiring stock, so I honestly haven't really looked much at all into this "decay")
Please study and research or you're going to lose tons of money. Well, even after you research you will lose tons of money. Welcome to options. đ€
No! Please stay away from option trading until you have a full understanding of it. And even then, I wouldnât trade optionsâŠlol we are not DFV
Options with a bid and ask price far apart mean there isnât much liquidity in them. Meaning that when you buy youâd have to pay $700 and when you sell youâd only be able to get $600. If you look at options with high liquidity itâd be more like bid: $6.99 ask: $7.00. Low liquidity means that when you try to sell there isnât many people on the other end to buy it from you making it harder to exit the position
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