Any news on SR-Phlx-2014-46?

[meanVelocity]

For those who don't know... It's the amendment to allow a $1 strike interval for the DIA and SPY Etf's above a $200 strike price.

http://nasdaqomxphlx.cchwallstreet....1&manual=/NASDAQOMXPHLX/filings/phlx-filings/

Kind of annoying... Not sure why the ruling is delayed! If it doesn't go through I will be stuck using the QQQ and DIA for options if the strike prices widen out to $5.

 

[1245]

There are strikes every 2.5 points in SPY. Is every 1 point necessary?

 

[meanVelocity]

No, two points would likely provide optimal liquidity. However, with the low volatility of this current market a one point strike would be better for traders at the moment.

 

[1245]

Are you a scalper?

 

[meanVelocity]

Nope. I generally hold options positions for 3-5 days. However, I sometimes do 1-2 hour long intraday trades if the opportunity presents itself.

 

[1245]

I looked on the the OCC website and did not see any reference to this change. I assume it will get approved. We had .5 strikes before.

 

[meanVelocity]

Approved, yess!!!

Will be a few more days before liquidity bumps up and tightens the spreads in... Was kinda hilarious the first day they were listed... I was looking over options and like... Wtf? This strike has a forty cent bid/ask spread, and the ones above and below it are as tight as three to five cents!