Strike Price Increment Question

Discussion in 'Options' started by mschey, Dec 3, 2007.

  1. Hi guys,

    Quick question here, at what $ cut off do the strike price increments change?

    For instance, at what price do options stop trading in 2.50 increments and start trading in $5 increments? Same question for the $5 increments to $10.

  2. timbo


    <25, 25-200,>200

  3. Thanks Timbo, been a long time and I'm tryinig to get back up to speed.
  4. timbo


    no problem -- I had to look it up myself. :D
  5. It can also depend on the stock...highly liquid but low vol stocks can have 2.5 strikes above 25$...ex PFE (has 25, 27.5, 30 )
  6. ellevers


    If there was a special dividend or split it could change the strike prices like in RIMM.