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Strong Liquidity Examples

Liquidity allows option traders to enter and exit trades more easily. Securities with strong liquidity have narrow bid-ask spreads, which saves you money in the long run. Here are some strong liquidity examples.
Strong Liquidity Examples
Kirk Du Plessis
Apr 19, 2021

In this short presentation we'll show you some examples of stocks that have great liquidity as well as stocks that have very poor liquidity and some concrete examples as to why poor liquidity will cost you money on the bid ask spread. Remember that if you trade non-liquid options (however great the setup might be for a new trade) you run the risk of never being able to close or adjust the position because the market is too small. So it's always in your best interest to only trade stocks that have very liquid and tradable options.

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