We show evidence of a liquidity searching behaviour of informed investors in option listings, which was also found by Collin-Dufresne and Fos (2015) using stock markets. Nevertheless, and differently from Collin-Dufresne and Fos (2015), we find that the option bid-ask spread may be still a good...

On June 2, 2009, NYSE LIFFE Amsterdam reduced the tick size for options trading at prices below €0.20 from €0.05 to €0.01 and on April 1, 2010, the exchange increased the price threshold to €0.50. We study the effect of that tick size reduction on the liquidity of individual equity...