The Natural-Mid Spread for an options contract or spread is the difference in percentage terms between the natural price and the mid-price. The difference between the natural indicates the liquidity of the trade. The smaller the difference between the two prices the more liquid or "tight" the option or spread trades.
How to Use in Your Brutus Options Ranker Strategy
This criterion can be added to any Brutus Options Ranker Strategy. The options trader should always look to minimize this criterion as a measure of the potential position's liquidity.