Hi everybody, I'm not really new, but I only used my old ID a few times and couldn't get it to work. I had logged in with a google ID. Does an ID age out quickly?
Anyway, I've started to buy options rather than stocks lately, and I have a couple of questions.
BVN (Compania de Minas Buenaventura) is listed by google finance as having a 11.90 billion market cap. That's a pretty big company, right? So why would it have insanely wide spreads like 1.30/4.60 on a 55 call for March? And no options further out from March?
I started thinking I could be a mini market maker with spreads that wide, so I put in a few purchase orders a nickel or a dime above the ridiculously low offers, and found that someone with deeper pockets than I (probably the market maker) had moved the bid to beat me. Also yesterday I put in a what I thought was a stink bid of .30 into a gap of about .25/1.60 and found it was immediately filled!
I honestly think just my little activities seem to have to decreased some of these spreads.
Does anyone have any thoughts about how such a big company can have such a comatose option market? Also, any general thoughts on the company. I know Peru has a greater than average geopolitical risk, so I'm not putting gobs of money into BVN.
Lastly, does anyone know why a peon is prohibited from having open orders on both sides of a trade? Is there a good way around the restriction?