In this article the determinants of the quoted market spread of options are analyzed. The empirical model is based on an extension of the Ho and Stoll model of the market spread in a market with competing market makers and limit order traders. It is shown that the part of the liquidity that is supplied by limit orders vis-à-vis market makers is negatively related to the size of the market spread. This observation combined with regularities over the day in the "thickness" of the book of limit orders, allows us to offer a new explanation for the intraday pattern in the bid-ask spread. The article uses intraday data from the book of limit orders, transaction data, and quotation data.