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In this option chain for SPY Apr 25 calls

the one with a strike of 170.50 has a lower price than the one with a strike of 171. But why is this? 170.50 call is deeper ITM than 171, so it should be more expensive, right?

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  • Tip: When referring to quotes that can change, please include a screenshot (as well as the link)... This way we could also see what column/item you may be referring to.
    – Chris W. Rea
    Commented Apr 22, 2014 at 17:44

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You are looking at last trade. The current bid/ask is more relevant. This issue is addressed in your recent question on SPY options as it relates to volume and current validity of posted prices.

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  • Ah I see. Bid/Ask is more relevant, needed to hear that one more time.
    – Victor123
    Commented Apr 22, 2014 at 15:42
  • And even then, B/A is not as real time as stock quotes, as volume on most strikes is minimal. You really need the broker quote to decide on a trade.
    – JTP - Apologise to Monica ♦
    Commented Apr 22, 2014 at 15:58
  • Yes, it is not real time, it is 15 min delayed. Is that not enough for the retail investor? That plans to hold the option at least for a week and only trades options with DTE > 1 month
    – Victor123
    Commented Apr 22, 2014 at 16:17
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    That's not what I meant, the B/A itself may be stale, beyond 15 min. Consider, there are hundreds of strikes/dates. The market maker isn't going to update every one without any kind of request for a real quote. When I place an order, I'll frequently see a real B/A that's not quite near what what was showing on the system.
    – JTP - Apologise to Monica ♦
    Commented Apr 22, 2014 at 16:28

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