As an options trader, liquidity and proper fills are vital for you to make money over the long haul. Among the most liquid options are those that trade penny wide. The following link provided from the CBOE will show you just which stocks and ETFs trade penny wide options.

In my own trading I have created a watch list and most of my trading takes place within these stocks and ETFs. Here are the advantages to trading these penny wide options:

1. Liquidity- These are among the most actively traded options on the market today. You will experience easier fills and more opportunities to trade than you would on products that are less liquid.
2. Bid/Ask Spread- The bid/ask spread is as tight as 1 penny, hence penny wide options! You can buy and sell options without giving up the difference of that bid/ask spread. Retail traders have never had this big of an advantage in trading options.
3. ETFs- Among these penny wide options are ETFs, Exchange Traded Funds. The advantage to trading ETFs is the lack of volatility in the underlying. No more do you have to worry about earnings, or other news risk associated with the stock, (ask Bear Stearns shareholders if this is important). ETFs are a great way to diversify your trading account.

Happy Trading!

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