AI
Friday, April 06, 2018 1:48:08 PM
NXPI - Wide spreads. Option volume is thin at most strikes. Open interest is all over the place. Some strikes have decent OI and others none. Not ideal for options.
April20 115 Calls have decent volume and OI. Spread is too wide going for 2.45 x 3.30. Now there are some things that you want nice and wide, spreads aren't one of them.
If you go way out and buy the Jan 2018 leap 120 call there is decent OI and the spreads are surprisingly tight compared to anything else I have seen. The spread is 7.80 x 8.50. Still wide. Volume is 50 and OI is 11,219. There is also decent OI at the 115 strike but with a wide spread of 10.20 x 12.40. Volume is 12.
Those wide spreads are tough to overcome. Especially for short duration trades.
April20 115 Calls have decent volume and OI. Spread is too wide going for 2.45 x 3.30. Now there are some things that you want nice and wide, spreads aren't one of them.
If you go way out and buy the Jan 2018 leap 120 call there is decent OI and the spreads are surprisingly tight compared to anything else I have seen. The spread is 7.80 x 8.50. Still wide. Volume is 50 and OI is 11,219. There is also decent OI at the 115 strike but with a wide spread of 10.20 x 12.40. Volume is 12.
Those wide spreads are tough to overcome. Especially for short duration trades.
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