What kinds of options signals are generated?
Example: For equity options or for options on ETFs? Traders should know how liquid these options are. Liquidity is important for opening and closing positions; For a given signal, what is the average price of the options and what are the expiration dates? Are the options in-the-money, out-of-the money, or near-the-money? You need to answer these questions so that you can evaluate how risky the signals are, and how much you should potentially invest in a trade. Out-of-the money options generally carry a higher degree of risk than in-the-money options. How long does the trading system stay in a position once a trade has been initiated in accordance with their signals? This is a key question. Options’ time erosion is the main reason why many options traders lose money. Answering this question will therefore help you evaluate the risk of trading such signals. The less time an options trader stays in a position, the lower the risk the options will lose value due to time erosion; Does the op