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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: TGMark ⎊  😊 😞
Number: of 6374 
Subject: Buying Long Dated Calls
Date: 07/15/24 3:48 PM
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Let's say I am considering buying some on an underlying that I think will recover significantly between now and January 2026, the longest dated option available.
If I look at the Interactive Brokers option chain, I see for example right now:

Underlying current price: $28

January 2026 Calls:
Strike: $50
Option Open Interest: 546
Volume: 28
Bid Size: (varies rapidly from 200 to 800)
Bid: $5.75 (varies slowly)
Ask: $6.20 (varies slowly)
Ask Size: (varies rapidly from 1 to 600)

A couple questions:
- are the bid and ask sizes in # of contracts? (I assume yes, though the numbers are quite large compared to the volume traded)
- the Volume is not changing, even though the bid/ask and bid/ask sizes are changing. Does this mean there are no executions?
- If I want to build a position of, say 15 contracts, how would I do that? Enter orders for a couple contracts at a time, with price midway between bid and ask say?

Mark
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