Why wouldn’t an option’s last trade price be between the current bid and ask?

Since the “price” (last traded) only changes when there’s a transaction, but bids & asks change without, they will deviate — especially for thinly traded instruments, and an option at a specific strike & expiry is often thinly traded.

Is bid price buy or sell?

The bid and ask price is essentially the best prices that a trader is willing to buy and sell for. The bid price is the highest price a buyer is prepared to pay for a financial instrument​​, while the ask price is the lowest price a seller will accept for the instrument.

What is a bid and offer price?

The bid price is the amount of money a buyer is willing to pay for a security. It is contrasted with the sell (ask or offer) price, which is the amount a seller is willing to sell a security for. The difference between these two prices is referred to as the spread.

Is bid price higher than offer price?

The offer price is always higher than the bid price. The justification for the same is that the seller always wants more for the goods offered for sale. The bid price is the seller’s price, which means if a seller intends to sell the goods immediately, they will have to accept the bid rate.