Successful Options Traders Understand The Secret To Success: Liquidity

Professional Options Traders use numerous methods to evaluate the worthiness of a prospective trade. A laundry list of tools is evaluated in anticipation of establishing a trade which will provide an excellent rate of return on investment. The list of factors to review might include: fundamental analysis, charting, Implied and Historical Volatility and a multitude of other Option Valuation techniques. All of those factors are important however, if one is trading options in an illiquid market, the likelihood of making money in the long-run is greatly diminished.