In a recent study, we noticed that options liquidity is concentrated close to expiry as traders close out and roll, instead of taking delivery, on expiring positions. However, for a hedger, that ...

Liquidity is a term that is often used throughout the investing world. But just like with inflation, it can mean different things depending on the context. Liquidity is a term that is often used ...

Liquidity is the lifeblood of financial markets, yet its fragmentation across 18 option exchanges presents a daunting challenge for traders, asset managers and hedge funds. Overcoming this ...

Previously in this column, we discussed why open interest (OI) is a more meaningful indicator of option liquidity compared to volumes. This week, we discuss whether a one-day lag in OI affects its ...