Wildest Stocks Since 2011 Left Liquidity Void in U.S. Options
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The headaches that plagued U.S. stock investors Monday were more like migraines in the options market.
With regulation and risk limits crimping the market-making role of big U.S. banks, traders are relying more on automated and high-frequency firms to keep trading lubricated. Liquidity was at a premium when the wildest markets in four years threw off bid-ask spreads and inflated options costs.