When the bid/ask is 0.05 by 0.10, how are what presumably are retail investors (based on volume) making trades at 0.07 & 0.08? My ETrade account won't allow me to place a limit order at such... Perplexed...
Various traders are willing to buy or sell at an in-between price. You just can't see it. So it's quite possible to offer .10 for a given number of options and pick some up at .07 and yet others at .08. But, unfortunately, you can't rely on it, as the different trading houses are competing with each other, not trying to do the retail player any favors.
most brokers do this and they make good money because they can buy on the penny and force you to buy on the nickel.
I would like to use Interactive Brokers, who allow more precise increments, but they have customer service problems to overcome. Keeping the devil I am familiar with for now.