Penny Increment Options..... - Options on Futures | futures io social day trading
futures io futures trading


Penny Increment Options.....
Updated: Views / Replies:1,353 / 3
Created: by mdsvtr Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Penny Increment Options.....

  #1 (permalink)
Membership Temporarily Revoked
Memphis,TN
 
Futures Experience: Advanced
Platform: ThinkorSwim,FXCM, Ensign Software
Broker/Data: ThinkorSwim, FXCM
Favorite Futures: Futures, Forex, Options
 
mdsvtr's Avatar
 
Posts: 232 since Sep 2010
Thanks: 853 given, 28 received

Penny Increment Options.....

FROM the CBOE website :

Can you explain options trading in penny increments?


In early 2007, the option exchanges began a pilot program to trade options in $.01 increments. The pilot included 13 stocks and exchange-traded funds (ETFs). The $0.01 increments were available for options with a quoted price of less than $3. Options with a quoted price above $3 were available in nickel ($0.05) increments. All IWM, SPY and QQQ options, however, were quoted in $.01 increments.

Since its initial rollout, the penny pilot program has been expanded to include well over 350 securities. Please note that all of the exchanges have the ability to provide executions in penny increments.
Was this content helpful?


What I am having a bit of trouble with, is fully understanding the way in which the Penny increment Options are based on / calculated.....

1. Does this refer to the prices between the bid x ask being in .01 cent increments ?


2. And does this referring to only those Options whose difference between the Bid x Ask does not exceed a $1 ?


3. Are the stocks with these Penny increment Options, prone t being more liquid and tighter spreads between the Bid x Ask than other stocks/options ?


Thanks - Michael

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
 Vendor: www.probabletrades.com 
OC, California, USA
 
Futures Experience: Advanced
Platform: IB/TWS, NinjaTrader, thinkorswim
Favorite Futures: stocks, options, futures, VIX
 
shodson's Avatar
 
Posts: 1,860 since Jun 2009
Thanks: 480 given, 3,255 received


It means the bid/ask can move up and/or down in 0.01 increments. It's not a guarantee that the spread will only be 0.01 wide. It's not necessarily an indicator of increased liquidity, but since it increases price efficiency it will help promote increased liquidity than if it were still trading at 0.05 increments.

Reply With Quote
The following user says Thank You to shodson for this post:
 
  #4 (permalink)
Membership Temporarily Revoked
Memphis,TN
 
Futures Experience: Advanced
Platform: ThinkorSwim,FXCM, Ensign Software
Broker/Data: ThinkorSwim, FXCM
Favorite Futures: Futures, Forex, Options
 
mdsvtr's Avatar
 
Posts: 232 since Sep 2010
Thanks: 853 given, 28 received

Thank you shodson for the explanation,
This is what my main question regarding Penny increment Options pertained to

I pulled up stocks that were listed under this category on TorS and noticed that they weren't " solely " .01 cent increments within the bid x ask , so I knew I was missing something

Thank you for clarifying

Reply With Quote

Reply



futures io > > > > Penny Increment Options.....

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Delta Increment Based Volume Ladder Bars gsiencze99 NinjaTrader 0 December 2nd, 2014 10:53 PM
Code to increment every two hours. onava EasyLanguage Programming 6 May 12th, 2013 06:11 PM
need advice on penny stocks rhwingfield Beginners and Introductions 6 October 1st, 2012 05:12 PM
CANADA KILLS THE PENNY kbit News and Current Events 1 March 29th, 2012 09:36 PM


All times are GMT -4. The time now is 06:41 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-18 in 0.08 seconds with 20 queries on phoenix via your IP 54.221.93.187