hello if i buy a deep in the money put Knowing they are expensive but my losses are smaller in case of a downside do they have liquidity?
Depends on the symbol and your time frame. Too far ITM will require work on your part and have a cost to get in and out. I prefer just ITM like a 75 Delta not 100.
Liquidity is the number of open interest. The higher the open interest, the better. Minimum I would consider is atleast, 250 contracts. Even then, the bid and ask spreads could be wider. Do not buy when open interest is only say 20 contracts. Getting out would be hell and the bid and asked would be very wide!