Options vs Forex Volume Liquidity Question

Discussion in 'Options' started by Aston01, Feb 24, 2012.

  1. Aston01

    Aston01

    I have read a fair amount about how liquid Forex is and the massive quantities moving around in it, but I just can't seem to nail down an definitive answer as to the size and liquidity of the Options market.

    Could someone possibly clarify a couple of things for me if possible?

    1.) Due to all of the different "Options" when buying Options whether it be Strike Price, Expiration Date, etc., how large is the individual market after it has been splintered so heavily within lets say an ATM Call on Apple expiring within 1-3 days ?

    If the Open Interest for the day was 20k contracts on that particular call ...could someone decide that they wanted to buy 10-15k contracts and actually be able to get filled and then get back out with relative ease at a later time?


    2.) And depending on the answer of #1 could someone decide to buy 50k contracts of say something decent size like Bank of America at a particular strike price when the options were priced at say $0.01 and actually expect their order to be filled or would it have to be split over multiple strike prices just to get the volume (obviously each strike would likely have a slightly different price if this was required)?



    Clearly I am using some extreme quantities in the above examples, but I am curious as to what the realistic limits are of the different aspects of the options market. I also am aware that the bid and ask spreads are often what are being referred to regarding liquidity.
     
  2. rmorse

    rmorse Sponsor