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option liquidity and bid-ask spreads

After-Hours Bid – Ask Spreads Can Be Deceiving

One of the BCI guidelines for selling covered call and cash-secured put options is that we require a bid-ask spread of $0.30 or less and/or an open interest of 100 contracts or more. Typically, options with large open interest will also be associated with smaller spreads. This makes it easier to close short positions at […]

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