A Bid-Ask Spread This Wide Can Erase Your Whole Profit on Exit.

Mike Butler covers the unglamorous skill that quietly decides your results: getting filled. He walks through the bid, the ask and the mid, why your natural price is the one that fills fastest and the one that costs you, and why he almost never uses a market order when a limit order plus a little patience does the job. The practical shortcut is the expiration list. A product with a dense run of weekly expirations has the liquidity to support them, while one that only lists a few monthlies does not, and that is where you find spreads so wide they can swallow your entire profit when you try to exit. He also explains why every leg you add widens the market, since the market maker has to fill all of them, and why the liquidity that shows up for earnings can disappear right after. This is education, not a recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Getting filled on options trades 00:52 What the bid, ask and mid mean 02:20 Why your natural price fills fastest 03:30 Limit orders over market orders 05:10 Why more legs widen the spread 06:20 The weekly expirations shortcut 07:40 When a spread is too wide to touch 09:30 Slippage on the way out 11:00 Price discovery without paying for it #tastylive #optionstrading #liquidity #bidaskspread #mikebutler #optionsinaction #limitorder #slippage #optionsstrategy #optionseducation tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.