liquidity for options trading

[renditioner189]

Dear friends,

I am considering trading in individual stock options but i see the open interest and volume is not that great for individual stock options as compared to futures. What is considered good liquidity (open interest, volume) for trading individual stock options? I would really appreciate your thoughts.

 

[lemondew]

check for gaps in ask and bid price. if ther is large gap for Out of money and a little In The Money then its best to avoid that options. IF you buy ATM it can go OTM or ITM and you could suffer while squaring off.

 

[tradedatrend]

at best try stocks of nifty 50, or even better top 10 stocks with highest weightage in nifty