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Options Trading Liquidity: Volume, Open Interest, Size & More

November 12, 2024

In options trading, liquidity refers to how easily an option can be bought or sold without causing a material impact on its price. This article highlights four key liquidity metrics: volume, open interest, spreads, and bid/ask size.

What is An Options Chain and How Does it Work?

An options chain displays all listed calls and puts for a specified underlying asset. Option chains are organized in an accordion style. Once an expiration period is selected, all calls and puts that expire within the specified period are viewable.

What Is a Strike Price? Options for Beginners

In options trading, the strike price is the price at which the owner of a call or put option can exercise their contract and convert it into the underlying asset.