Purchasing options between the bid and ask prices, or even at the bid price or below?
For those more experienced options traders, I'm wondering if you can share what you've found in regard to purchasing near, at or possibly below the bid. For example, yesterday in a slightly rising market for a stock, I placed a limit order to buy a call at the bid price, and it was executed after about 5 minutes, even as the stock was rising in price slightly, but steadily. My specific questions are:
1) How often are you able to buy an option either close to, at, or below the bid price. Are there things particular to market conditions that allow this? (Obviously in a falling market, the bid price is also falling. i.e. hence hopefully the question is still valid)
2) Same question on the sell, in
regard to the ask
3) Do you notice better ability to do this for puts rather than calls?
[if you look at the black-sholes formula price] 4) Do you notice better ability to do this as a factor of what the black-sholes formula says the real option price should be. I.e. if it shows quite a bit lower value than the bid price, does this influence what you see occurring?
Thanks much. I'm imagining all experienced options traders run in this either directly or indirectly, as limit orders are hit? Your experience is much appreciated.
---- I want to add this graph that really helps show things and the response to this question and still wanting more answers. The stock / option doesn't matter. So this graph is from this morning, look at the option prices, volume, stock price, and volume.