When looking at a potential trade, what is considered a small bid/ask spread?
Since stocks have a wide range of prices today, some spreads may look large, but actually are still liquid. How large of a spread should we be targeting?
Generally, a bid-ask spread of 1% of the option’s mid-price signals that the options are liquid.
To get an even better price, try entering the order at mid-price and adjust from there if you don’t get filled.