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Let me tell you about one of the most frustrating things in trading — and it’s not a losing trade. It’s finding what looks like the perfect setup, pricing it out, getting ready to pull the trigger, and then watching the market refuse to fill you at any reasonable price.
I spent half an hour this week trying to get filled on Western Digital (WDC) options, and I walked away with nothing but a lesson worth sharing.
When ‘Too Good’ Actually Means ‘Too Illiquid’
Here’s what happened: I was looking at WDC cash-secured puts with strikes so far out of the money it seemed almost ridiculous — the kind of setup where you’re thinking, How is this even possible?
The premium looked fat and the distance looked safe. On paper, it was a joke — in a good way.
But the bid-ask spread was so wide I couldn’t get anything going. I saw what looked like a $0.50 possibility on net credit but couldn’t even get filled at $0.25. Even after lowering the ask again and again, cutting it down to half of what the chain showed, still nothing. It felt like the market makers were asleep on the job.
Waiting for a fill in a name this illiquid feels a lot like fishing. You toss the perfect lure right in front of the fish — close enough that it should bite — but it just sits there staring at it, not moving, not reacting, not taking it.
The spreads are even worse on credit spreads because you’ve got two prices to negotiate. They’re reluctant enough at one price. Try getting them to move on two at the same time.
On top of that, in thin names, the smallest orders can distort the entire chain. If one or two contracts hit the book, the ask jumps. You go to buy a single call and they’ll fill one or two, then bump the ask higher. That’s the tell: If micro-volume moves the market, you’re swimming in a shallow pool.
The Liquidity Contrast
Compare all that to a name like Nvidia (NVDA), where liquidity is almost comical in the other direction. The spread is often just $0.01 and you can sell at the market and still get filled at the ask. It rarely moves more than a penny either way, and the fills are instant, effortless and automatic.
But with NVDA you’ve got to get closer to the money to make the trade worth your time. With WDC, you can go far out — but only if someone is actually willing to trade with you.
And here’s a paradox that every seasoned trader eventually confronts: When your order gets filled instantly, it usually means you were wrong. If you’re sitting there waiting and getting no action, it often means you’re right — and the market doesn’t want to give you that edge.
After half an hour of trying to make the trade happen, I finally walked away. No fill, no trade and no frustration carried forward — just clarity. Sometimes the smartest play is moving on.
This is a great learning lesson for people, because it shows you can plan a great trade, but that doesn’t mean it’s going to get filled.
Trade well,
Jack Carter
Jack Carter Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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Disclaimer: We develop tools and strategies to the best of our ability, but we can’t guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. From 1/1/21 through 4/2/26, the average return per options trade alert published in real time (winners and losers) is 3.37% in 3 days, with a 96.2% win rate.
