Traders Ask: What Do I Do About An Obnoxious Bid Ask Spread on a Butterfly Trade?

Seth FreudbergGeneral Comments, Options Education, Seth Freudberg's Blogs, Traders Ask5 Comments

An Options Tribe Member  asks: Given that we’re about 55 days out from the  July monthly options expiration,  I was playing with a July 770-820-870 put butterfly on the RUT (when it was trading around 840).  Usually the bid/ask spread for ATM and OTM puts on the RUT is narrow enough, but the spread on the 870 put ($51.80 by … Read More