How Can a Trader Minimize the Impact of the Bid-Offer Spread When Trading Options?

The primary method is to use limit orders instead of market orders, placing the order between the current bid and offer. This requires patience, as the order may not execute immediately.

Traders can also focus on options with high trading volume and open interest, as these generally have tighter spreads. Furthermore, trading during peak market hours often provides better liquidity and narrower spreads.