From Theory To Practice

Monday - Friday | 1:00 - 1:20p CT

3/12/19: Portfolio Analysis - Illiquid Pricing

From Theory To Practice

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

In today’s portfolio analysis, we see a great example of how illiquidity causes difficulties in finding the fair price of a strategy. Specifically, with CMG up today, our Long Call Spread was actually DOWN earlier in the day. This is completely counter to what we would expect, and when we investigate the situation a bit more, we see that this clearly a product of an illiquid underlying.

From Theory To Practice More installments

See All »

Latest tastytrade Videos As of June 19

Most Shared From the last 30 days