Options Glossary

Glossary: Mid Price [Underlying]

Last Updated: March 26, 2017


Mid Price [Underlying]

What Does Mid Price [Underlying] Mean in Options Trading?

The underlying mid-price is the price between the bid and ask prices currently on offer for the stock or ETF.  This is a good target for a limit price placed in any order that involves the underlying stock.

Underlying Mid Price, Mid Price Underlying

How to Use In the Brutus Options Ranker

The underlying mid price may be added to your Brutus Options Ranker strategy if you have a specific underlying price you'd like to stay close to.
We recommend only using this criterion in target mode. E.g., if you would like to target stocks that trade around $50/share you may target the mid price to $50. We do not recommend minimizing the target price unless coupled with more heavily weighted criteria to ensure that proper underlying and options liquidity are considered as part of the strategy.

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