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Selling options

Personal Finance & Money Asked on March 26, 2021

When selling an option after you bought it (not writing one) how easily are orders filled for large quantities of contracts ($25,000+) Do these sell orders usually get filled easily or not at all?

One Answer

The price of the option determines what kind of size $25,000 means. 1,000 contracts at 25 cents apiece would be hard to move, even for the most liquid option series. Much less so for 10 contracts at $25 apiece.

Another factor would be the liquidity of a stock's options. The entire open interest for all of the options traded in some stocks is quite low whereas the daily trading volume for some individual strike prices in heavily traded securities like AAPL or SPY can easily be over 25,000 contracts.

Answered by Bob Baerker on March 26, 2021

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