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InTheMoney's video: The BID-ASK in Trading Options can Make or Break Ya Adam Answers Episode 3 InTheMoney

@The BID-ASK in Trading Options can Make or Break Ya | Adam Answers Episode 3 | InTheMoney
💎Get 2 free stocks valued up to $1,400 when you deposit $100 in WeBull: https://act.webull.com/k/CfaJLUrdC3v2/main 💎Sign up for Robinhood and get a free stock, like Visa, Microsoft, or Apple! - https://robinhood.c3me6x.net/rjg4j​ 💎Automate your investing using M1 Finance (amazing tool for long-term investing): https://m1.finance/blhmFpjkaGp8 💎Get a some free stock of your choice by signing up for Public: https://public.com/inthemoneyadam 💎Join MooMoo and earn up to $1,000 in free stock!: https://j.moomoo.com/003yoV 💎Try out TastyWorks, an options-focused brokerage: https://bit.ly/3ibd8iX​ (Depositing $2,000 helps support my channel) 🚨 Buy some MERCH here! - https://bit.ly/3b0CmOs ❓Ask me questions here: https://bit.ly/3mlZlaS 💰Discord: https://discord.gg/Ye5Uvft​ 💰Support the channel directly - https://www.patreon.com/inthemoney​ All promotions apply to the time the video is posted but may change and become irrelevant in the future. This description will not be updated to reflect this, check the newest video for the most up-to-date promotions. You should not treat any opinion expressed on this YouTube channel as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Opinions expressed are based upon information considered reliable, but this YouTube channel does not warrant its completeness or accuracy, and it should not be relied upon as such. This YouTube channel is not under any obligation to update or correct any information provided in these videos or their descriptions. Statements and opinions are subject to change without notice. Past performance is not indicative of future results. This YouTube channel does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this YouTube channel. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested or lose more than their original investment. Investments or strategies mentioned on this YouTube channel may not be suitable for you. This material does not consider your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this YouTube channel. Before acting on information on this YouTube channel, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. ------------------------------------------------------------------------------------------------- In this third episode of the Adam Answers series where I answer trading questions from /r/smallstreetbets, we discuss how volume affects the bid-ask spread of options, and how the bid-ask can significantly impact your trading success. Without analysing the bid-ask prior to entering an option trade, you may start things off at a serious instant loss. In this episode, we dive into the importance of volume and its impact on your trading. This is an often overlooked piece of the puzzle that can have a substantial impact on profits and losses. I describe it in the context of the Robinhood trading app, but it applies to every brokerage. It is possible for Robinhood, or other brokerages, to show a loss even if the stock didn't move. This could be caused by implied volatility or the convergence of extrinsic value, but it could also be caused by low liquidity (low trading volume). When the volume of an option is low, it can cause the bid-ask to jump around. Because brokerages display the middle of the bid-ask (the mark) as the option's price, this expansion and contraction of the bid-ask can cause your P/L to show sudden gains or losses that are not caused by changes in the stock price or any of the option's Greeks. This is another reason why you need to make sure that the option has high volume and a tight bid-ask spread before entering the trade. You do not want a large bid-ask, otherwise you will be giving up a large amount of money to the exchange (the market maker) for pairing you (the buyer) with a seller. This is because, to enter and exit a trade immediately, you must buy at the ask (AKA hitting the ask) and sell at the bid. You can also set a limit order inbetween the bid and the ask, but it could take a while to get filled (or you may never get filled). Thanks for watching, I love each and every one of you.

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This video was published on 2020-01-30 22:26:37 GMT by @InTheMoney on Youtube. InTheMoney has total 445K subscribers on Youtube and has a total of 121 video.This video has received 2K Likes which are lower than the average likes that InTheMoney gets . @InTheMoney receives an average views of 155.4K per video on Youtube.This video has received 138 comments which are lower than the average comments that InTheMoney gets . Overall the views for this video was lower than the average for the profile.

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