By Jeff Clark on the S&A Short Report Direct Line:
Look at the bid/ask spreads in the option market.
100% difference in many cases between the bid and the ask. No one on the floor is willing to make a fair market. So, anyone with any positions is getting screwed because they can't get out.
I only saw this happen once before. It was Oct. 19, 1987 when the options market was much smaller and much less liquid than we have nowadays.
Today will go down in history as a market changing event. Not because of the decline or the volatility, but because anyone trying to trade couldn't get a proper bid or ask.
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