I have just opened an options trading account with Commsec.
Now I wanted to buy a put option. However when looking at the series (and this is a large blue chip stock) the spreads are large (for the premiums) and with the liquidity it looks like it will be very hard for me to close any sort of position on these options contracts (was looking at BHP and MQG - December). With these large spreads as a newbie it is hard for me to gauge the impiled volatility of the market and therefore it is hard for me to work out a fair price that I should bid for these options.
My question is how do options traders trade on ASX options with these liquidity constraints? Surely they pose risks (i.e unable to closeout).