Options trading bid ask price
Imagine that the current ask price for a put is $1 per share, and the current bid price is 90 cents per share. In this case the spread is 10 cents. What this means is that when you buy the option you immediately incur a small loss, because you paid $1 and can currently only sell it for 90 cents a share. A Bid for example may be $563.28, while the Ask price is $563.91 for a stock; that’s a $0.63 Bid Ask Spread. A lower priced stock, with lots of buyers and sellers participating in it, will have a 0.01 spread most of the time.