Option Bid-Ask Spreads for 20 of the most Heavily Traded Tickers

Discussion in 'Options' started by Raltin, Dec 16, 2019.

  1. Raltin

    Raltin

    Raltin has a comprehensive list of features & factors that investors use in machine learning and quant models for investment and risk management. One of the features is the bid-ask spread of options for a given ticker. The bid-ask spread percentage is important for several reasons - 1) It gives us a clearer picture of the supply and demand of an asset. 2) It is the de facto measure of liquidity. 3) It helps us understand the costs of a trading strategy 4) and it can be used to identify potential trading arbitrage opportunities.

    Doing a consistent bid-ask spread measure across time for a given ticker is hard because of options expiry. Similar to Raltin’s VIX like implied volatility measure, we created a bid-ask spread measure across time to understand bid-ask spreads over time. The below table shows the median bid-ask spreads for 20 tickers with the most option volume for options closest to the 30 day At the Money (ATM) expiry.
    [​IMG]

    Raltin Pro and other institutional clients get access to historical bid-ask spread percentages across all tickers and moneyness.

    Please email raltin@raltin.com for more details and demo of our features / factors and portfolio back testing technology.
     
    Last edited: Dec 16, 2019
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