Tag: trading spreads

Introduction:When trading options, understanding the bid-ask spread is crucial for making informed decisions. The bid-ask spread represents the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). In this article, we will delve into how analyzing the bid-ask spread in relation to strike price points can provide valuable insights for options traders. The Bid-Ask Spread and Its Significance:The bid-ask spread is a key indicator of liquidity and market sentiment within the options market. It is influenced...