wide option spreads and BVN

1 post / 0 new
Daphneisfedup's picture
Joined: 09/01/2011
Hat Tips: 82
Posts: 2
wide option spreads and BVN

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?

Edited by admin on 11/08/2014 - 06:20
Syndicate contentComments for "wide option spreads and BVN"