Biotech Values

[ilpapa]

The market makers in the options market are analogous to the house in poker

That depends completely on the stock in question. Many liquid options have 1 or 2 cent spreads. After that it's a question of my volatility assumptions vs the market maker's. He may be right, he may be wrong.

Agree however that the wide spreads and illiquid option series are guaranteed destruction. Granted you can usually trade between the posted spread, but it's hard to make any money in some of the 66% spreads I see. Plus the lack of liquidity make some of them a roach motel where one has to accept whatever the market maker deigns to give you.