Option price bid ask

This article is brought to you by LearningMarkets. If you had purchased a call option two weeks ago and were now ready to sell it back for a profit, you would look at the bid price.

That is the price at which you can buy an option. You would simply look at the ask price. The ask price is always higher than the bid price.

In this case the spread is 10 cents. So you need the option to appreciate in value before you can get to a breakeven point and then profitability.

The spread is a major component of trading costs. In this video, we will talk about some simple rules and ideas for minimizing the effect of the spread.

Options Basics: How To Read An Options Table

This will include a discussion about the advantages of longer-term investing, and how to find options with penny spreads.

Article printed from InvestorPlace Media, http: Financial Market Data powered by FinancialContent Services, Inc. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.

Options Prices by jyfyyuxy.web.fc2.com

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