I have noticed that when there is a large spread between the bid and the ask if I bid above the current bid there might be someone desperate to sell it to me since it looks like I am giving a better deal on a position they want to exit and then later if I sell it at below the ask but still above what I paid it also looks like I am giving a good deal
Am I stupid or is the bid ask spread free money
byu/Nearby-Cloud-3476 inoptions
Posted by Nearby-Cloud-3476
4 Comments
the bid ask is free money for the MMs, you not so much.
Genius strategy that no one else has thought about, try it and report back
Are you describing the well known “buy low sell high” strategy in other words? 😜
I mean this in the most polite way possible, but you are trying to compete in a marketplace against highly capitalized and sophisticated professionals, and your “idea” is the most basic and easy concept out there. You are going to eaten alive if you try this. You will only find your orders getting filled in situations where it’s bad for you.