Sudre
Active Member
Thanks.I think it’s because those are so far out of the money, there is not a huge difference in value between the strikes even though they are far apart. In addition, the wide bid-ask spreads make their value ranges overlap even more. The market being closed may also skew the accuracy of the numbers.
I’m pretty certain you could never get a credit for buying a call spread, but it wouldn’t hurt to try for free money.
Today I watched it and I think what happens is people start panic selling the higher strike because a few times it came within a penny of each other. The interesting thing is I tried to purchase the spread for a penny and Robinhood refused to work. I clicked the submit button and it just spun like it was processing and nothing happened. It just stayed on the screen and presented the submit button again with no reason why. I then went ahead and selected a different option spread that was close but probably would never hit the penny mark and I WAS able to submit.... except there really was no chance on that particularly strike filling. Very strange. I sent in a ticket as to why the first one would not submit (I also took a video). Most likely they would have never filled anyway.