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Showing content with the highest reputation on 05/25/2024 in all areas

  1. 1 point
    You might not want to jump in with big trades in the more illiquid options. Usually in the Mag7 shares (which many trades are on) I don't have issues putting bigger sizes on. Same for the big ETFs (SPY,QQQ, TLT...) I tend to skip the smaller ones altogether these days but thats more a time restriction on my side rather than liquidity concerns, but you might want to do smaller clips in the more illiquid names. You'll get a feeling for the liquidity once you've tried to get in and out of a few trades. The size of the spread (I look at in in terms of percent of option price (mid)) and open interest are indications for how liquid things are.
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