Options Glossary

Glossary: Mid Price [Underlying]

Last Updated: March 26, 2017

Glossary

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.

Synonyms:
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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