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

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “Can I trade options with low volume and open interest?” And the short answer to this question is yes, you can trade options even if it has low volume and open interest, but the real question is – Do you want to be trading that particular product on an ongoing basis? The problem that I see a lot of times when people send over trades to me or over to our team to take a look at, is that they’re generally trading underlying stocks and ETFs that have very low, in many cases, no open interest or volume for the option contracts. And what that creates is that creates a huge spread in the bid ask spread and it creates a really tough time to get fills into the market. Now, does this mean that we can’t make a trade if the trade is let’s say an amazing setup that comes once in a blue moon? Of course not. We can still enter the position and try to get it filled, but it’s just going to be