C croker Junior member Messages 42 Likes 0 Jan 2, 2012 #1 For US stocks trading <$50 usually the option strike prices go in $1 increments. But I've noticed some, e.g. DNKN which is currently at around $25, has $2.5 and $5 increments for the strike price. any idea why it's different?
For US stocks trading <$50 usually the option strike prices go in $1 increments. But I've noticed some, e.g. DNKN which is currently at around $25, has $2.5 and $5 increments for the strike price. any idea why it's different?
C childofprodigy Newbie Messages 5 Likes 0 Jan 3, 2012 #2 Liquidity probably has something to do with it Less liquid options => less incentive to write options with more strike price in which no one will buy
Liquidity probably has something to do with it Less liquid options => less incentive to write options with more strike price in which no one will buy
