example; ABC 30 bid .05 ask .10
ABC 30 bid 7.50 ask 7.60
why the range differance?
2006-11-30 17:01:28 · 2 answers · asked by cmac 2 in Business & Finance ➔ Investing
same month calls
example; GG dec 06
2006-12-01 17:12:03 · update #1
Another possible reason is that the expiration date is different. Let's say the stock is currently trading at $28 a share. The December options will expire in two weeks - it's not likely to expire "in the money", so the spread is .05 - .10.
The other options expire a long time from now, with the company in the midst of an upswing. A year from now, the projected stock price is $37+ a share, according to the option value.
Each option has its own ticker symbol, which contains the three digit symbol, then a letter that indicates the expiration month (A-L is call option, M-X is put option), then a letter that identifies the strike price. You probably already know this, but just makin' sure.
2006-12-01 06:42:02 · answer #1 · answered by Polymath 5 · 0⤊ 0⤋
Just guessing, but I suspect the first set of prices is for a PUT option and the second set of prices is for a CALL option?
Or am I misinterpreting the question?
2006-12-01 02:44:21 · answer #2 · answered by Randy H 4 · 0⤊ 0⤋