Question
What are some reasons that the bid-ask spread for an option decreases over time as the option increase in value, other than an increase in
What are some reasons that the bid-ask spread for an option decreases over time as the option increase in value, other than an increase in volume?
Most notably, Netflix options in 2008 to 2019 saw a dramatic decrease in the bid-ask spread average %, which I would think is partially due to the dramatic increase in call/put volume. Are there other reasons this bid-ask decrease could have occurred?
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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
