The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we’re going to be talking about why liquidity is still critically important as an options trader. I think we’ve talked about this a number of times even on the daily podcast here, but it still comes up a lot which is why I’m doing the show today, that liquidity is a real major, important factor in how you should be choosing your ticker symbols and the underlyings that you’re trading. A lot of times, I’ll see people send over comments or I’ll even see comments inside the forum or the Facebook group or just online, of people trading pretty large position sizes and what I would call fairly illiquid markets or even just new markets. Recently, there’s been a huge slew of new IPOs coming onto the market, companies like Lift and Zoom and now that those options contracts are being traded in those highflying tech companies, a lot of people are starting to pile into those. The problem with that is that because they are so n