Options Glossary

Glossary: Bid price

Last Updated: July 12, 2015


Bid price

What Does Bid price Mean in Options Trading?

The bid price is the highest price which a buyer is willing to pay for a stock option. Conversely, this is the price that the stock or option may be sold for when a market order is used.
In order to ensure good liquidity in the stock and options market, we need to evaluate the difference between the ask and bid price, or the Bid-Ask Spread.
The bid price can be used in OptionAutomator's Brutus Options Ranker as a criterion to be balanced against other conflicting criteria in the user's strategy tree.


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