Best Practices

Weekdays 8:00 – 8:20a CT

Fair Pricing

Best Practices

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

What makes one market “fairly” priced compared to another?

  • The answer: Liquidity

In this segment, Tom and Tony dive into the world of liquidity and take a look at the drivers of fair pricing. Find out why this matters when entering and exiting trades and how we can gauge liquidity and fair pricing when searching for underlyings to trade.