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Market Intelligence › Basic Terminologies

FAR STRIKE LIQUIDITY

The bid-ask spread in door strikes is very small; Vehicle entry looks cheap but exit is expensive.

Published by The Retail Trader · JUL 31, 2026 · Derivatives (F&O)

Far Strike Liquidity — The bid-ask spread in door strikes is very loose; Vehicle entry looks cheap but exit is expensive.

WHERE THIS FITS IN

This term comes under Derivatives (F&O), in the section "Reading OPTION CHAIN". The option chain is not just a table of premiums — it tells the whole story of positioning:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Change in OI
• Highest OI Strike
• OI Concentration
• PCR (Put-Call Ratio)
• Max Pain
• Expected Move
• IV Skew / Smile
• Theoretical vs Market Price
• Open Interest Buildup Table

To read the entire group and all its examples in one place, see the journal "DERIVATIVES: DICTIONARY OF FUTURES & OPTIONS" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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