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I am trying to sell C (citi) call options expiring 2013 Jan at $5.00 in 2 different modes.

Calendar spread mode: Bid Price is $0.24

Covered call mode: Bid Price is $1.01

1)Why is there a difference in the option bid value?

2) Does the software tool have bugs or am I understanding something wrong?

Bob Baerker
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user2494
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1 Answers1

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First - You posted this on a Sunday night, option bid/asks are often not accurate outside of normal trading time. Right now - 12:15 EST - C is $4.88 and the $5 call is running huge volume with a bid/ask at .99/$1.00. Very tight spread, other strikes are near 20 cent spread.

Can't answer where that .24 came from. Spreads should not produce different bid/ask, although on large bid/ask differences, you may get filled at a lower debit than the bid/asks add up to. (If example is needed here, a comment will prompt me to edit in.

JoeTaxpayer
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