Hello all.
I am looking to trade options,but have some questions:
1.How much option contracts can I buy?(e.g. 100?1000?10000?)
2.Is there any liquidity problems with options?For example:
I buy 1000(100000 shares) Call contracts of "ABC" at strike of 100 for 2 months,after 1 month price is on 110 and I tell myself- ok, thats enough.So I have two options-sell this contracts to the market or exercise them.But the question is can I sell to the market(not exercise) this huge number of contracts immediately for profit?In other words-is there chance that after I bought 1000 contracts I can't sell them back to the market immediately and the only thing I have left is to exercise them?
If anybody is familiar with Options please help.
I am looking to trade options,but have some questions:
1.How much option contracts can I buy?(e.g. 100?1000?10000?)
2.Is there any liquidity problems with options?For example:
I buy 1000(100000 shares) Call contracts of "ABC" at strike of 100 for 2 months,after 1 month price is on 110 and I tell myself- ok, thats enough.So I have two options-sell this contracts to the market or exercise them.But the question is can I sell to the market(not exercise) this huge number of contracts immediately for profit?In other words-is there chance that after I bought 1000 contracts I can't sell them back to the market immediately and the only thing I have left is to exercise them?
If anybody is familiar with Options please help.