Dollar spread versus percentage spread in options
Scans run April 29 to May 8, 2026 via Spreadsearch
Editorial note (September 25, 2026): This page was substantially revised to replace the original scan-data summary with a methodology note. The original URL and reporting period have been retained for continuity.
Purpose of the scans
This was the first full report based on a stable Spreadsearch panel. It also introduced a clearer distinction between two measurements: the dollar spread and the percentage spread.
Both start from the same displayed bid and ask, but they answer different questions. Using only one of them can produce a misleading ranking.
Dollar spread and percentage spread
Dollar spread is the difference between the displayed ask and bid. It shows the absolute size of the quoted gap.
Percentage spread expresses that gap relative to the price of the option. It makes it easier to compare contracts with very different premium levels.
The following figures are hypothetical and are not market data:
| Example | Bid | Ask | Dollar spread | Relative to bid |
|---|---|---|---|---|
| Lower-priced option | $1.00 | $1.20 | $0.20 | 20% |
| Higher-priced option | $10.00 | $10.20 | $0.20 | 2% |
The dollar spread is identical in both examples. Relative to the bid, however, the gap is much larger for the lower-priced option. A ranking by dollar spread would treat the two contracts equally, while a percentage ranking would not.
Why both measurements are useful
Dollar spread gives the absolute gap. It can highlight expensive option contracts where a moderate percentage still represents a large amount.
Percentage spread improves comparison. It helps prevent high-priced contracts from dominating a ranking only because their premiums are larger.
Percentage can also overemphasize low-priced contracts. A small dollar difference can become a large percentage when the bid is low. This is one reason to apply a minimum bid filter and review both measurements together.
Neither measurement shows the expected execution price. The displayed bid and ask are point-in-time quotes. Quoted size, market depth, and later quote changes also matter.
What this changed for Spreadsearch
The test supported displaying and sorting by both dollar and percentage spread. This gives users two views of the same quoted gap instead of reducing it to a single ranking.
This public summary uses only hypothetical figures. For a product overview, see How It Works or explore the demo.
This report is provided for informational purposes only. It does not constitute investment advice, financial recommendations, or trading signals. Trading options involves significant risk of loss, including the possible loss of your entire investment. Past performance is not indicative of future results.
This report was prepared with the assistance of AI tools.