Replies to post #25608 on NorthWest Biotherapeutics Inc (NWBO)

[TOB]

Thanks. Yes I left out quite a bit also, the spread being a key example. It is a built in penalty for choosing options.

Generally, I offer the market makers about 60% of the spread and see if I can get filled.

So for those who may not know what we're talking about, in Evaluate's example of the NWBO Jan '17 $5 calls; the Bid is $1.60 and the Ask $2.45. So I'll subtract 1.60 from 2.45 to get a spread of 0.85 and multiply by .60 = .51. Add that to the Bid and I'll set a buy limit at $2.11

If I get filled quickly, I prolly overpaid. If not filled at all, I may bump up my bid a bit.

Then do the same thing when it's time to sell. In this case I'd ask $1.94

In the case of the Jan '17's, the spread is so large I would try to offer them less, see how hungry the sellers are.