Who decides what strike price will be offered?

Discussion in 'Options' started by john7722, Sep 17, 2021.

  1. john7722

    john7722

    Hello,
    Do you know Who decides what strike price is being offered?
    In regards to stock options.
    thank you
     
  2. Robert Morse

    Robert Morse Sponsor

    The OCC and OCC's participant exchanges.
     
    destriero likes this.
  3. Robert Morse

    Robert Morse Sponsor

    I emailed the OCC. "Thank you for contacting the OCC. The decision to add new strikes is made solely at the exchange level."
     
  4. john7722

    john7722

    thank you for info.
     
  5. Somebody told me that you can ask your broker who will in turn ask the exchange to make more strikes available. I tried doing that with IB and they told me no so who knows. Maybe try reaching out to the exchange directly.
     
  6. FSU

    FSU

    The CBOE used to allow you to ask them for new strikes directly, but as of about a year ago they now make you go through your broker to make the request. My broker has done this on my behalf and they have turned down every request we have made (SPX)
    New-Series-Requests.pdf (cboe.com)
     
  7. What's interesting, is time and time again they are so horrible at it for HIGHLY volatile securities. Often you'll see items with the strikes not being able to keep up with the growth of the underlie.

    GME was just one of many examples lately...