Free
Option Trading Tips
Bookmark Option Systems
Focus on Stocks
with Active Option
Volume |
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The benefit
associated with this
approach to option
trading is
liquidity. Similar
to stocks, the more
an option is traded,
the smaller the
bid-ask spread;
hence, the option
will trade closer to
fair value. This is
an important concept
that most novice
traders overlook and
pay for until they
learn to adjust.
Smaller spreads
allow a trader to
buy and sell at more
favorable values. |
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