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How Does the Underlying Asset’s Volatility Affect the Options Bid-Ask Spread?

High volatility in the underlying asset increases the uncertainty of its future price, which increases the risk for market makers who are quoting options prices. To compensate for this higher risk, market makers widen the bid-ask spread on the options contract.

A wider spread means a higher cost of transacting and a greater potential for slippage when an order is executed.

Why Do Options with Longer Time to Expiration Often Have Wider Bid-Offer Spreads?
How Do “Greeks” like Gamma and Vega Influence a Market Maker’s Spread Adjustments?
What Is the Difference between ‘Historical Volatility’ and ‘Implied Volatility’?
In Cryptocurrency Trading, Why Are Bid-Offer Spreads Often Wider for Less Liquid Altcoins than for Bitcoin?