Option Quote Increments
Option bid and ask prices are quoted in minimum increments, and these increments differ depending on price and sometimes on the underlying security.
Price increments for most options contracts are:
- $0.05 for all option series below $3
- $0.10 for all option series $3 and above
There has recently been an initiative to tighten spreads in an attempt to reduce the cost of entering and exiting option positions. This initiative, called the Penny Pilot Program, is slowly transitioning securities to smaller increments. Currently, more than 365 stocks are part of the Penny Pilot Program and trade on the following increments:
- $0.01 for all option series below $3
- $0.05 for all option series $3 and above
The minimum increment for options traded on symbols QQQ, SPY and IWM is $0.01 for all options series including $3.00 and above.
For a full list of stocks currently included in the Penny Pilot, please visit the International Securities Exchange.
Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, and by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Market volatility, volume, and system availability may impact account access and trade execution. Supporting documentation for any claims will be supplied upon request.
