Options Trading Tutorial

Why do multiple quotes appear in both Calls and Puts for the same strike price in the same month?

Public Comments

1. 1 IS FOR BID PRICE AND OTHER IS FOR ASK PRICE BID IS WAHAT YOU SELL IT FOR ASK IS WHAT YOU WILL BUY IT FOR.......YOU CAN BUY LIMIT 2.75 IF ASK IS 3.25 i.e. THIS IS CALLED A SPREAD YOU ALWAYS HAVE SELLERS AND BUYERS SOMEONE HAS TO MAKE A PROFIT
2. You will actually have 4 different prices for the same strike and the same month and here is why: Calls - Bid (sell price) and Ask (buy or "offer" price) Puts - Bid (sell price) and Ask (buy or "offer" price) Learn more about puts and calls for FREE directly from the source: The Options Industry Council - the education arm of the Options Clearing Corp (OCC) (official site) http://www.optionseducation.org/ Required reading before trading options: (official site) "Characteristics & Risks of Standardized Options" http://www.optionsclearing.com/about/publications/character-risks.jsp