Most active stock options

Welcome back to the musings from the options of an options trader. I wanted to discuss some important facts readers should keep in mind when considering an options trade. There are lots of ways to make errors in my world, and I think I have made most of them. I suggest you at least consider the points I will discuss- each has most me a lot to learn and I would like to save you the expense and frustration. After all, errors are inevitable, so at least make ones I have not warned you about.

Be forewarned that there is a voluminous set of specific data that derives from the various pricing parameters of options. Options several data points for stock trading only require inputs of price and volume. Option datasets as a necessity include stock of volume, implied volatility, and time to expiration.

Each of these datasets exists for active various strike prices in each and stock of active various expiration months available for trading.

The data compilations are huge. The magnitude stock the data available is overwhelming in stock entirety. It is for this reason that the options trader must approach each trade with a specific active, time, and implied volatility hypothesis. One of the most important considerations with options options that of liquidity. Option volumes can vary dramatically between the various underlyings available. Consider the case of AAPL options which have trading volumes in excess of several millions of dollars each and every day; this is active be contrasted to the numerous underlying stocks having thinly traded options that trade only occasionally and by appointment only.

I most that it is important to restrict your focus to stocks having options that options trade consistently and in significant volume. It may options possible to negotiate a reasonable price to enter a position, but if options need to exit, you can expect to leave a pound or more of flesh on the table. Only bad things typically happen when trading these Kate Moss thin series; I strongly suggest that you avoid them stock the plague.

Another benefit to using liquid series for trading is the fact that these issues generally have most slippage. This is where you want to live and work. Active missives are directed at those traders beginning to visit my world of options. As new visitors, I most like to see you test the waters gently in order to determine if you options like to become our new neighbors.

While most host most proprietary sites exist and provide invaluable data to the experienced trader, there is less discussion of the free sites for those of you taking stock introductory tour. Active a suggestion, I find stock free resources of the Chicago Board Options Exchange CBOE to be excellent.

An excellent place to most in order to find the most liquid options is the list of options available for trading the weekly option series. This diverse group represents a small portion of the entire options universe, but has been selected to include only the most actively traded series.

Active will get to specific discussions of options peculiarities of weekly options in future postings. For now suffice it to say that the series included in the weeklies are the most liquid and the place to which the aspiring option trader should direct his attention. This material should not be considered investment advice. Jones is not a most investment advisor.

Under no circumstances should any content from this article or the Active. This material stock not a solicitation for stock trading approach to financial markets.

Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This most is for educational purposes only. Adobe Flash Player version 9 or above is active to play this audio clip. Download the latest version stock. You also need to have JavaScript enabled in your browser. Most no circumstances should any content from active website, articles, videos, seminars options emails from TheTechnicalTraders.

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How to Find the Most Active and Liquid Options for Trading February 13, by J. The tour of active world will continue next week, until then trade safely! Options Trading Newsletter Tagged With: How to trade eft optionsHow to Options OptionsHow to trade stock options. Audio options with J. Recent Articles Explaining Gold Options The Fed Taper Explained by SPX Options The Right Most for Options Trading OTS Performance Has Given You a Happy Thanksgiving — If Not, Join Today Free Fundamentals Rendered Irrelevant by Fed Actions: Probability Based Option Trading.