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Old 11-21-2005, 01:14 PM
Sniper Sniper is offline
Senior Member
 
Join Date: Jun 2005
Posts: 704
Default Re: why are FDG 2008 call options below market price?

When you trade options you are generally buying at the ask, and selling at the bid (unless you can get someone to trade with you at a price in the middle)...

FDG is currently trading at 36.20

The current market for FDG 30 calls:
Dec '05 - Bid: 6.30 Ask: 6.90
Jan '06 - Bid: 6.10 Ask: 6.90
Jun '06 - Bid: 6.50 Ask: 7.50
Jan '07 - Bid: 6.50 Ask: 7.40
Jan '08 - Bid: 6.10 Ask: 7.50

These options all trade light volume (if they trade at all on any given day).
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