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Re: TOB post# 25604

Wednesday, 12/03/2014 8:31:37 PM

Wednesday, December 03, 2014 8:31:37 PM

Post# of 718771
This is a very detailed, yet simple explanation of option pricing. Beautiful, actually.

As an options trader, the only thing I would add is that the Bid/Ask spread for options are typically quite large.

Thus, when you enter a position and want to exit immediately thereafter, you usually have to take a 10%+ loss just to cover the difference in the bid/ask spread.

It is a warning that upon entering the position, you could see a loss of 20% right off the bat.



Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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