
Hari Krishnan – Hedging a Commodity Bull Market (S7E4)
Flirting with Models
Liquidity Constraints in Commodity Options Market
This chapter discusses the impact of limited liquidity in the options market for commodities and its implications for modeling and research. The speaker explores the challenges of executing trades on underpriced out-of-the-money call options due to wide bid-ask spreads and limited open interest. They also highlight the importance of patience and gradually working trades in low liquidity markets.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.