Option Prices Listed in Newspaper

Dear Options Trading FAQ:

How come my broker says I can't go by the option prices listed in the newspaper? I call him asking for a fill based on the price I see on the option but am told no fill. Why?

Getting No Satisfaction from My Option Trades

Dear Getting None:

Sorry, your broker is absolutely right. Until your paper starts listing the closing BID prices, it's not much help to you. What you see listed is the last traded price for the option contract. This may be from earlier in the day (before your order was placed) or from days ago! This always fools naked option sellers who are looking to sell these "inflated" values. They then are disappointed to find out that the real price is much lower. Remember, there is no free lunch on Wall Street (those luncheons are hosted by firms looking for your money) - if something looks too good to be true, it is. This is especially true when it comes to trading options.

Good luck and trade well! Remember, an educated options trader is the best options trader. Browse these books books on trading options.

Tags: Options Trading, Options Broker, Options Order

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