What are the key factors to consider when choosing a call option contract for AAPL in the cryptocurrency space?

1 answers

• May 26, 2022 · 3 years ago
  At BYDFi, we recommend considering the liquidity of the call option contract when choosing one for AAPL in the cryptocurrency space. Liquidity refers to the ease with which an option can be bought or sold without significantly impacting its price. Opting for liquid options ensures that you can enter and exit positions efficiently, without incurring substantial slippage. Additionally, liquid options tend to have tighter bid-ask spreads, reducing transaction costs. To assess liquidity, you can look at the trading volume and open interest of the option contract. Higher trading volume and open interest generally indicate better liquidity. Keep in mind that liquidity can vary across different strike prices and expiration dates, so it's important to evaluate each option contract individually.
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