Summary: When [entering a trade](https://www.tastytrade.com/tt/learn/order-entry-checklist) there are four things that we consider: * Liquidity * [Implied Volatility](https://www.tastytrade.com/tt/learn/implied-volatility) * Price * Strategy ### Liquidity: * Liquidity is important because if we can't get filled, we can't paid. * Liquid: Bid-ask spread between .$0.01-$0.05 * Semi-liquid: Bid-ask spread between $0.06-$0.50 * Illiquid: Bid-ask spread> $0.50 ### Implied Volatility: * We use [IVR](https://www.tastytrade.com/tt/learn/measuring-implied-volatility) to measure if IV is high or low * IV helps to determine strategy ### Price: * BPR is effected by price, BPR also has influence on strategy chosen * We can use price to determine if we want to make a directional trade ### Strategy: * We can choose our strategy based on many things, some include: * IV level * Directional bias * BPR Tune in as Tom and Tony discuss this checklist in depth!
