MM--

The calls can't be sold unless/until somebody buys them, of course, but you're right about the static ask price. The bid price is static, too--at zero.

I don't think floor traders can sell naked calls, so I suspect the trades being made are "in the box." If someone puts in a sell order that matches someone else's buy order, the trader has to do the transaction, irrespective of his own bid/ask prices.

I'm not positive about the floor traders' inability to sell naked calls, though. Anybody here know one way or the other?

Maybe there's some funny stuff happening. High-frequency-trading of options? Credit-default-swaps traded for KRY calls? Lehman Brothers trading in ghost markets?

Cheers,

Lope