Today, Dr. Jim introduces Anthony to the term Liquidity. To illustrate, they use the August options in SPY, and they dive into a detailed discussion about the bid-ask spread. Anthony learns that the width between the bid and the ask is a great indicator of liquidity. The tighter the spread, the more liquid the stock. Anthony also learns that tastyworks offers us a built-in liquidity indicator on a 1-4 star basis. Lastly, however, Anthony leaves Jim feeling disappointed and defeated, when he didn't know who Rick Roll was.
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