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 be talking about liquidity considerations for closing option trades. Again, another question that was sent in from one of our members and he basically said, “If I decide to close out a position and there's no liquidity, does that mean that I'm stuck with the options or does it simply mean that I can sell back or buy back for a lesser or worse price?” This is a great question because what we talk about often with options trading is that liquidity should be one of the things that you look at on a consistent basis, that you can use our watch list and toolbox software, in which case, we screen and kind of filter out tickers for liquidity already for you. We try to close that gap and remove that barrier immediately. But if you are going to trade say a random stock or a random ETF, you should be looking at the liquidity. We've done shows on this that you can search in the podcast app or on our website a