The number of strikes

Discussion in 'Options' started by marsman, Jul 21, 2016.

  1. JackRab

    JackRab

    @marsman, but what strike do you want on penny stocks? Every 5 cents... and then trade options to 1/10th of a cent? There's no point really.... Also, it might be moved away from one exchange to another for not meeting exchange requirements. That happens, they have to de-list. Then, again, there's no point for options....
     
    #11     Jul 21, 2016
  2. marsman

    marsman

    I think the lack of strikes is a disadvantage for that instrument or underlying.
    Ie. it gets punished and discriminated...
    IMO, there should always be at least 5 strikes below and 5 strikes above ATM, each side initially covering max. 40 to 50% off ATM...
     
    Last edited: Jul 21, 2016
    #12     Jul 21, 2016
  3. JackRab

    JackRab

    But what if the stock trades at 10 cents? Then the first OTM will be at least 10% away... there's no point...
     
    #13     Jul 21, 2016