Options price imputation when Bid/Ask spread is wide

Discussion in 'Options' started by TigerBalm, Apr 30, 2014.

  1. newwurldmn

    newwurldmn

    Even if those events happened, the hedges that far OTM may not perform the way you are expecting.
     
    #11     Apr 30, 2014
  2. newwurldmn

    newwurldmn

    Regarding liquidity:

    Unless you are trading millions of notional (5MM+) of options, liquidity should not really be a factor. When I trade < 1MM notional I generally get filled just outside mid market. When I trade much larger: on the bid or through it based on the market and penny pricing.

    This is true for all options and liquidity. In options liquidity is much better than the screens state.
     
    #12     Apr 30, 2014