Nanex ~ 10-Dec-2012 ~ Wide Spreads Make Wild Trades
Wide spreads in the opening seconds (sometimes minutes) in hundreds of stocks lead to
the appearance of wild trades. Most of the time these are the result of a poorly chosen
market order, but sometimes these trades could be part of a deliberate attempt by someone
wishing to spook or spark interest in a stock. We picked 4 examples out of dozens that
occur every day.
In the charts below, trades are color coded by exchange. The gray shading is the National
Best Bid/Offer Spread (top is best ask, bottom is best bid)
1. DLPH - Trades range from $37.90 to $34.04
2. DNI - Premarket trades just 5 seconds before opening range from $21.39
to $14.92 !
3. EIX - Trades range from $44.84 to $42.57 in a 1
4. RKT - Trades range from 62.05 to $64.84