Most "Efficient" Options On The Market Today (How Should I Improve This? What Else You Guys Want to See?)polloponzi t1_iuk2z8w wrote
Reply to comment by mytendies in Most "Efficient" Options On The Market Today (How Should I Improve This? What Else You Guys Want to See?) by mytendies
>you need to transact on liquid options to make money. Period.
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>if you try to buy an option for $100, but can only get a fill for $105 and then try to sell it 1 minute later for the $105 you paid, but can only get a fill for $95 then... you lost $10 in 1 minute getting in and out. That is 10%
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>What most people don't realize is that this bid ask spread robs them of a large portion of their profits and it amplifies their losses.
It seems to me you are looking to day-trade or swing-trade options.
I don't usually do that, I hold options for at least a week usually, so the bid-ask spreads don't really matter much to me.
When I want to day trade options I just trade the $SPX options that are by far the most efficient and liquid options you will be able to find. On top of that they are cash-settled so you can do all kind of spreads without worrying about pin risk or assignment. Check those.
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