I have a lot of gripes about low-volume options markets like we’re in now...
It can be especially maddening when institutional buyers aren't participating while the rest of us are still trading.
Low trading volume can wreak havoc on liquidity, making the difference between buyers and sellers — known as the “bid-ask” spread — wider than a truck.
For the uninitiated, liquidity is the combination of daily volume and open interest. The higher each of those categories are, the faster a stock or option can be bought or sold without impacting the price.
There are a few more big reasons why options liquidity — sometimes called "order flow" — is important, especially for retail traders.
Anyone placing trades during the week may actually be stacking the deck against themselves…
Look… every week, thousands of headlines like earnings or bad news out of the Federal Reserve or China wreck what may seem to be perfectly good trade setups.
So instead of traders risking their hard-earned cash during the meat of the week, there’s a simple Friday afternoon strategy that is able to skip all of the madness…
It taps into some of the most reliable forces in the market, already giving New Money Crew Head Trader Lance Ippolito direct access to gains like 50% on DKNG, 28% on BTU and 226% on PTON, all in the past couple of weeks!
Trade Volatile Markets Like a Pro With Options Spread Strategies February 15, 2022
This is a tough market for traders to find shelter from volatility. Traders who can’t stay on the sidelines can look to limit risk with an earnings options spread strategy.
2 Retails Stocks to Buy After Wednesday’s Sales Surprise February 18, 2022
Let’s leave this loveless, volatile week in the rearview and turn our sights to the long weekend ahead with our latest New Money Crew Weekend Watchlist.
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