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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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Know the risks of trading after hours

After Hours (AHT)and Pre-Market Trading: Is It Right for Average Retail Investors?

It’s 4 PM EST and the bell rings on the New York Stock Exchange marking the end of the trading day. As we watch CNBC, Bloomberg or Fox Business News we see the tickers till scrolling at the bottom of our TV screens! What’s up with that? The New York Stock Exchange and the Nasdaq […]

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