The thing with thin stocks is the orders the market-maker is leaning on could be thin, distant, or non-existent. He may, in fact, just be pegging his offer a half point above the most recent print! Or he may even be the seller.


If he is offering 1,000 at 21, he could be leaning against a client with 40,000 for sale at 22. In this case, with the nearest seller at 22, 21 is a bargain - regardless of whether there is a buyer above 20. I mean, why are you buying, obviously not because you have anyone but yourself to lean on immediately!


If his nearest seller is 22, or may not sell for days, or is merely a theory rather than any paper in his deck, note that YOU ARE THE BID. So when you buy at his price, you are buying on the bid. Sure, sometimes he may have proximity to an offer at 20 3/4, but how are you going to get access to it?


There is nothing "fair" or worthwhile to chase after at the midpoint between the bid and ask, it is just silliness, trust me. If you don't want it at the offer for tour own reasons, it is hard to see how you could want it "at the mid" - seeing as the orders the bid is leaning on may be dollars lower, and you can't get first grab at them anyway.


Are you leaning or buying? Because good luck leaning. They'll just pick you off.


elroy