Penny-priced options

Discussion in 'Options' started by a529612, Jan 8, 2007.

  1. Where can I find the list of stocks that have penny-priced options starting from Jan 23? When will they apply this rule to all options? Thanks!
  2. ellevers


  3. MTE


    This is essentially the same list, except for GLG has been replaced with A, due to GLG's getting delisted.

    It's a 6-month program, so I guess it'll be at least 6 months before penny pricing is universal.
  4. How can IB execute option orders in penny increments before this new rule is in effect? They have their own MMs?
  5. MTE


    I think it's done thru their internal system, i.e. customers trading against other customers (IB guys please correct me if I'm off here).

    If another participant in the system sends an order that can be matched against your penny price (a contra-side order), IB will attempt to execute a trade at a U.S. options exchange using one of the available penny auction pricing mechanisms (such as the Price Improvement Period auction on the Boston Options Exchange or the Price Improvement Mechanism on the International Securities Exchange).
  7. MTE


  8. kny3


    Hello a529612. Here's the scheduled rollout of the Penny Pilot.

    Whole Foods (WFMI) this Friday, 1/26

    GE Friday, Feb 2
    MSFT Friday, Feb 2

    the balance (Q's, INTC, etc) Friday, Feb 9

    This isn't official. Also, Q's are pennies in all series, all months. Brokers should have something on their sites soon.

    kny 3 :cool:
  9. Yup, to confirm, MSFT is definitely today. Check out these spreads!!!

    #10     Feb 2, 2007