OPTIONS LIQUIDITY ANALYSIS
A trade is only real if you can execute it.
Liquidity determines how easily an options position can be entered and exited at a reasonable cost. It is an important part of whether an opportunity is genuinely worth attention.
What is options liquidity?
Liquidity reflects how actively an options contract is traded and how easily it can be bought or sold. Active markets tend to have tighter pricing and more reliable execution.
Why it matters to traders
A great idea in an illiquid contract is a different trade \u2014 and often a worse one \u2014 than the same idea in a liquid contract. Execution quality affects the real cost of acting on a conviction.
How Mirsad helps
Mirsad incorporates execution quality into its overall AI conviction assessment, so an opportunity that cannot be traded reasonably is represented honestly in the view.
Limitations
Liquidity conditions change throughout the trading day and can vanish quickly in fast markets. No analysis can guarantee execution at a particular price.
Where it fits
Execution quality is one part of the broader conviction view that Mirsad builds \u2014 combined with market context, risk, and the overall picture.