The Traderszone Network

Published in TZ Latest News 19 September, 2017 by The TZ Newswire Staff

No ‘bid’ after option purchase

I bought 3 call options with expiry in November but as soon as I had bought them the ‘bid’ disappeared with only an ‘ask’ remaining.

All the bid-ask prices in every other strike remain visible, only no bid in the strike I bought as well as another lower strike which also had been bought by someone (not me).

My question is:

Are market makers not prohibited from refusing to make a market in options they happily accept premium from?