Does anyone else wish they had opt strikes of $2.50 for all stocks?

Discussion in 'Options' started by nitro, Apr 16, 2006.

Do you desire Option Strikes every $2.50 for every stock?

  1. Yes

    17 vote(s)
  2. No

    2 vote(s)
  3. I don't trade options

    1 vote(s)
  4. I trade options but it makes no difference

    0 vote(s)
  1. nitro


    I do.

  2. The yeses have it by a wide margin. In a lower-volatility environment, more strike prices is a good idea for customers. Floor traders and specialists would probably balk at it because they'd have to keep an eye on more strike prices.
  3. nitro


    Yeah, I can't imagine anyone that has tried to put on a spread that hasn't wished for more strikes.


    I don't see why this would add much work - it is mostly all autoquoted anyway. :confused:

  4. segv


    Autoquoting is harder than you might suspect. Additional quotes translates to additional hardware, bandwidth, and software licenses. It is a very large cost with a very small return.

  5. The bandwith you talk about is an exchange problem, not a problem for the traders hardware and software costs are not a problem at all. I was a market maker at Euronext Amsterdam and we even asked for more strikes because it increases trading volume and so it increased the profits for the marketmakers. At euronext a lot of stocks, especially in the front months, have strike prices with the interval of 1 euro and for the customer this is ideal! It is absolutely ridiculous that in the US a lot of stocks trade with $5 strike prices.