Bid-Ask Spread | Options Trading Concepts



The bid-ask spread refers to the width of a stock or option's bid and ask. The tighter the spread, the more liquidity there tends to be. As spreads widen out, that is usually an indication of illiquidity. Check out this segment to learn more! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/XWlOf Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

  1. how do i plot a graph for bid/call-ask/put option graph?
  2. Thank you. This video really helped me understand why some of my trades looked good but ended up sucking. Thank You!
  3. I have noticed that in big stocks like amzn, gmc, goog the bid and ask spread is very wide compare to spy or appl. Now this have good volume and good open interest witch it leads me to believe the option is very liquid. Some of them have over a 1000 in volume and open interest why is this? For example the 10 jun 16 weeklys AMZN $730 call has a volume of 1,309 and open interest of 1,476. Now the bid and ask is very wide (.20 cents apart). The bid going for $5.10 and ask $5.30. If they are liquid why is the bid and ask so spread out?


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Visibility: 13405

Duration: 12m 41s

Rating: 90