Bid-Ask Spread Explained | Options Trading For Beginners

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  • Опубликовано: 10 сен 2024

Комментарии • 13

  • @2011Savere
    @2011Savere 5 лет назад +3

    Wouldn't an at the money option have more trading volume being that your purchasing the option closer at the strike price? You said in the video there would be lower trading volume if you buy in the money.

  • @JaiC81
    @JaiC81 Год назад

    G'Morning - thanks for posting this - had a quick question, Option bought on Mid (not ask or bid) - how does one interpret that? From the video it could be a buyer or a seller, right? just confirming my understanding! Thanks again...keep up the good work!

  • @kingdrew5083
    @kingdrew5083 3 года назад +1

    I love your videos so much!

  • @nimchimpsky4418
    @nimchimpsky4418 2 года назад

    What happens to the bid/ask spread on the expiration date?

  • @asutoshpatel4436
    @asutoshpatel4436 4 года назад

    On thinkorswim paper money version - just submitted an order to sell 4k of a stock with Bid of 12.52$, my order got filled at 12.40$ - why would that be? (13.5M volume)

    • @projectfinance
      @projectfinance  4 года назад +1

      If you used a market order it's because the stock price/bid/ask changed as you were entering your order. If you sell with a limit order you won't be filled unless the price is at your price or better. When selling, that's the limit price or better.

    • @asutoshpatel4436
      @asutoshpatel4436 4 года назад

      @@projectfinance Thanks! Ya it was market order where all I clicked was : shift+click. Auto-send settings. So I tried to be as fast as possible.
      Btw there have been several times where my limit order to sell at $12.50 (4k shares) isn't filled when the market price is $12.75 and the Bid price is $12.60. Why would that be?

    • @projectfinance
      @projectfinance  4 года назад +1

      I'm not sure. My best answer is that paper trading isn't real, so I can't say your fill scenarios are real either. Paper trading is a rough estimate I believe, and I'm not sure how they determine fill prices on the paper trading platform.

    • @projectfinance
      @projectfinance  4 года назад +1

      The concepts discussed in this video are true in real-market trading though!

    • @asutoshpatel4436
      @asutoshpatel4436 4 года назад

      @@projectfinance Ya my best guess too - thanks! And ya the video's super helpful.

  • @simpletrade6850
    @simpletrade6850 4 года назад

    Why did i see a live trading video of someone where he bought the options by clicking the bid?

    • @simpletrade6850
      @simpletrade6850 4 года назад

      @Tyson Boynton but here he says ask is the price of the option, going by what hes saying, that person from the video shouldve pressed ask