I was looking at some quotes for SPX on April 9th 2025. It seems spreads widened dramatically during the big almost 10% move up. It seemed asking prices looked correct based on option models but bidding prices were very low. So you might have something like bid $6, ask $60.
In cases like this when you're short a position, a stop loss may not be set off because (based on Robinhood) it uses the bidding price to determine if a stop should go off, and a low bid price ignores the stop right? So if your stop loss was $20, and the bid is $6...you never go off and the market continues to surge....
Anybody dealt with such an issue?