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- 12 June 2008
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Hey guys,
I’m researching & educating myself on options trading and have a couple of questions.
Looking at the volume figures available on the ASX website, there are many option contracts with a volume of 0. Does that mean there have been no trades on that contract for that day, and if so, does that make it difficult to sell an option which I may own? Therefore are options (especially cheaper options, significantly away from the stock price) not very liquid on the ASX market? Given the volumes of shares traded and their liquidity I find this confusing
I’ve read the pro’s and con’s of trading in the US markets compared to the OZ market and understand the US is more liquid due to higher volumes, but I was planning on starting out small in the OZ market before taking on the US! Is that a good plan, or is it best to jump straight in to the US markets?
Any advice?
Many thanks.
I’m researching & educating myself on options trading and have a couple of questions.
Looking at the volume figures available on the ASX website, there are many option contracts with a volume of 0. Does that mean there have been no trades on that contract for that day, and if so, does that make it difficult to sell an option which I may own? Therefore are options (especially cheaper options, significantly away from the stock price) not very liquid on the ASX market? Given the volumes of shares traded and their liquidity I find this confusing
I’ve read the pro’s and con’s of trading in the US markets compared to the OZ market and understand the US is more liquid due to higher volumes, but I was planning on starting out small in the OZ market before taking on the US! Is that a good plan, or is it best to jump straight in to the US markets?
Any advice?
Many thanks.
